The House of Representatives made a surprising move on July 24 by adjourning a week ahead of schedule and beginning their August recess early. Speaker Mike Johnson announced the break during a floor session, putting a halt to all floor activity until after Labor Day.
The early recess comes at a time when a heated debate is raging over a proposed amendment related to releasing files connected to Jeffrey Epstein. Last week, Rep. Ro Khanna tried to attach a measure requiring the Justice Department to release Epstein files within 30 days to the stablecoin GENIUS Act. However, the House Rules Committee rejected the amendment in a close 6-5 vote, leading to further procedural action threats from Democrats.
This ongoing dispute ultimately led to Speaker Johnson declaring that no further votes would take place before September, effectively ending the chamber’s session a week earlier than planned. While this decision may temporarily pause legislative activities, it does not affect crypto-related measures that have already been approved on the floor.
These measures include the GENIUS Act, which focuses on stablecoins and has already passed the Senate and received President Donald Trump’s signature. Additionally, the CLARITY Act and the Anti-CBDC Act, which aim to clarify regulatory jurisdiction and prohibit the Federal Reserve from issuing a central bank digital currency, are now before the Senate for consideration.
However, the early recess does delay progress on other crypto policy initiatives, such as tax legislation. During a recent House Ways and Means Oversight Subcommittee hearing, discussions were held regarding the need for updates to digital asset taxation frameworks. Lawmakers were considering proposals like establishing a de minimis exemption for small transactions and clarifying staking reward treatment. Any legislative movement on these proposals will have to wait until after the recess.
One particular crypto-adjacent measure affected by the early adjournment is the Veterans Affairs Distributed Ledger Innovation Act of 2025 (H.R. 3455). Introduced by Rep. Nancy Mace, this bill aims to evaluate how blockchain technology could enhance benefits claims processing at the Department of Veterans Affairs. Despite passing a subcommittee hearing, the bill awaits full committee markup and a House floor vote, which will now be delayed until after the recess.
The legislation calls for a study into how distributed ledgers could improve transparency and efficiency within the VA’s claims systems. It emphasizes the need for immutable records to prevent fraud and outlines the definition of a distributed ledger to ensure the department uses the technology appropriately.
While lobbying efforts and behind-the-scenes work may continue during the recess, any new floor action will have to wait until September. Crypto bills that have already passed the House are now in the hands of the Senate and the White House for further consideration. Measures like the VA blockchain study will remain on hold until lawmakers reconvene in Washington.