Since President Donald Trump gained the election in November, the value of bitcoin has surged from about $70,000 to roughly $120,000. This large climb is because of excessive expectations for looser regulation, together with a crypto-friendly regime in each Congress and within the White Home.
And Matt Mena, crypto analysis strategist at 21Shares, sees even greater features forward. “With coverage, macro, and flows aligning, bitcoin could also be organising for a bullish finish to the 12 months – the place a push towards $200,000 is now not only a lengthy shot, however a rising likelihood,” he says.
Whereas the realities of discovering consensus amongst lawmakers on cryptocurrency have delayed some progress thus far, the passage of the GENIUS Act in late July, which we element beneath, reveals that the trade is poised to attain some main wins.
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And with two different crypto-related payments on lawmakers’ radar, it is value sizing up the legislative panorama. Certainly, these payments have the potential to ship super impacts to these with publicity to the area, from retail buyers to conventional banks to keen fintech and blockchain startups.
If you happen to’re questioning what bitcoin buyers must know concerning the crypto payments in Congress proper now, here is a fast rundown.
The GENIUS Act
The GENIUS Act, brief for the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins Act, was handed by legislators in late July and signed into legislation by President Trump. It marks the primary crypto invoice to make it over the end line within the 119th Congress.
This laws will set up a framework to speed up the event of stablecoins, that are a sort of digital foreign money designed to attenuate volatility by having their worth pegged to a extra steady secondary asset such because the U.S. greenback.
The purpose is identical as legacy foreign money, in that the worth stays fixed so that companies and customers can transact with confidence. The regulation permits for the privateness that crypto fans need, in addition to the advantages of fast and low cost transfers on digital cost rails.
One problem stablecoins face is the built-in privateness of cryptocurrencies, which gives a severe stumbling block for regulators and legislation enforcement professionals.
Take tether, the main stablecoin that’s estimated to have a $160 billion market worth. It continues to face regulatory scrutiny relating to unfastened “Know Your Buyer” necessities, that are normal at conventional banks to make sure these establishments will not be supporting warfare criminals or terrorist states.
However the GENIUS Act seems to discover a center floor, proposing “permitted stablecoin issuers” who’re topic to state and federal licensing and oversight.
That is anticipated to carry a measure of accountability to the area with out forcing the issuers to observe conventional banking guidelines or undercutting a number of the privateness options that make stablecoins common to start with.
Why it issues for bitcoin buyers: Adoption and assist for stablecoins will make extra mainstream customers and companies more and more comfy with crypto as they give the impression of being past the legacy monetary system.
In a latest earnings name, JPMorgan Chase (JPM) CEO Jamie Dimon admitted his agency has to concentrate on inner stablecoin growth if it needs to fend off competitors on funds processing, deposits and even bank card rewards.
The billions of {dollars} presently held in tether stablecoins appear to point these digital property can and can coexist with minimal influence on the worth proposition of bitcoin.
In reality, many buyers see bitcoin’s volatility as a function – as long as that volatility continues to usually present upside, in fact.
However continued confidence in digital currencies used for regular client and enterprise transactions could be undeniably good for bitcoin, offering yet one more proof level that this digital asset is excess of only a fad.
The CLARITY Act
The CLARITY Act, often known as the Digital Asset Market Readability Act of 2025, goals to make clear registration necessities and regulatory constructions for bitcoin market individuals, together with digital commodity exchanges, brokers and sellers.
The onerous actuality is {that a} multi-year turf warfare between the Securities and Change Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC) over jurisdictional points has created complications for firms that need to get entangled with bitcoin or crypto, however do not know who’s in command of enforcement or oversight.
Take into account main change Coinbase World (COIN), which even introduced a lawsuit to federal courts in an effort to power the SEC to answer certainly one of its requests after years of foot-dragging.
When a regulator is so disengaged or confused that they ignore market individuals relatively than answering “sure” or “no” on new merchandise or approaches, it’s not an excellent sign for firms that want to innovate or problem the outdated method of doing enterprise.
The state of affairs is additional sophisticated by proposals which were floated to put off the CFTC altogether and roll the group into the SEC.
And contemplating the CFTC has simply two commissioners at current, certainly one of whom introduced in Could she could be leaving the company, there may be an pressing want to determine who’s the boss.
As for the CLARITY Act, the invoice handed within the Home of Representatives on July 17 and now heads to the Senate for consideration.
Why it issues for bitcoin buyers: Some bitcoin-related entities function offshore, and generally in unscrupulous methods. So, regulatory readability is a important step in constructing investor confidence in addition to supporting market construction suppliers.
In some ways, it is fairly superb that bitcoin has grown as a lot because it has within the face of this complicated state of affairs between the SEC and CFTC.
Disruptive applied sciences typically power public coverage stakeholders to rethink the ruleset. However bitcoin has existed since 2009 and has had institutional curiosity on Wall Road for roughly a decade.
So the glass-half-full tackle the dearth of readability at current might be that there are nice instruments, keen market individuals and next-gen purposes ready within the wings for regulatory readability.
And if not, at minimal, the CLARITY Act would offer the long-term path to a regulated and secure surroundings – but additionally one which turns into extra aggressive as startups acquire confidence that their subsequent massive concept is value pursuing because it falls inside congressionally accredited parameters.
Anti-CBDC Surveillance State Act
A part of the explanation motion on crypto regulation has been onerous is that a few of these payments get tied collectively. In reality, some lawmakers tried to incorporate language from the Anti-CBDC Surveillance State Act into the CLARITY Act that will ban efforts to ascertain central financial institution digital currencies (CBDCs) within the U.S.
The Anti-CBDC Surveillance State Act was ultimately handed within the Home of Representatives on July 17 as a separate piece of laws that now heads to the Senate.
CBDCs might be considered a digital greenback or digital euro, a type of foreign money that’s issued and backed by a neighborhood central financial institution – identical to onerous currencies.
For some hardline conservatives, this concept of government-sponsored blockchains of citizen transactions veers too near Huge Brother monetary surveillance. Therefore, the identify of the invoice contains opposition to each CBDC in addition to the “surveillance state.”
In response to Majority Whip Tom Emmer (R-IN), the passage of the invoice that he sponsored will “codify President Trump’s effort to forestall the event of a central financial institution digital foreign money, or CBDC, and guarantee the USA’ digital foreign money coverage stays within the arms of the American folks, and never the Administrative state.”
Why it issues for bitcoin buyers: To many bitcoin believers, CBDCs are the antithesis of the cryptocurrency promise. In spite of everything, the very prefix “crypto” implies one thing hidden or secret – and the privateness supplied by digital property that function exterior the standard monetary system has in some ways fueled its attraction.
Many specialists have speculated that elevated motion and even discussions round CBDCs will drive extra of us to bitcoin due to its confirmed document of privateness, and its world nature that’s separate from nationwide politics and central banking.
Time will inform if this provision advances within the Senate, or extra importantly, whether or not the U.S. Federal Reserve or some other Western financial institution launches a CBDC that catches on.
Even the European Central Financial institution, which is much extra superior in its quest for a digital foreign money, hasn’t moved past preliminary preparation and stakeholder discussions. Which means there’s little danger of bitcoin shedding its attraction anytime quickly to a CBDC.
