Tensions flared on Capitol Hill Wednesday as the House attempted to revive stalled cryptocurrency legislation following a dramatic GOP rebellion the day prior.

Conservative hard-liners, who had derailed efforts to advance three key crypto bills on Tuesday, returned to the table after a late-night meeting with President Donald Trump and a Wednesday negotiation with Republican leaders. The breakthrough allowed the House to move forward with a procedural vote — but the compromise has sparked new controversy.

At the heart of the dispute is a deal to merge the market-structure-focused CLARITY Act with a separate bill banning the creation of a U.S. central bank digital currency (CBDC). While the merger won over hard-liners,…