Bitcoin has surged to an all-time high of $120,000, marking a significant milestone for the world’s largest cryptocurrency as anticipation builds for a critical week ahead.
Starting July 14, the US House of Representatives will engage in discussions during what is being called ‘Crypto Week,’ during which three pro-crypto bills are set to be debated.
The expected regulatory framework could potentially reshape the landscape for cryptocurrencies in the United States, aligning with what crypto insiders have long desired.
President Donald Trump has publicly urged lawmakers to revamp the existing regulations that have led to numerous lawsuits against crypto firms conducted by the Securities and Exchange Commission (SEC) under the Biden administration.
This shift in regulatory focus, alongside bullish market sentiment, has helped propel Bitcoin to its record high of $122,055, reflecting a 29 percent increase year-to-date.
Bitcoin, the pioneer of the cryptocurrency sector, began its trading journey in January 2009, where it was valued at just $0.004.
The surge in Bitcoin’s price has also ignited a broader rally within the cryptocurrency market, with Ether, the second most popular cryptocurrency, reaching a five-month high of $3,048.2.
Currently, the total market value of the cryptocurrency sector stands at approximately $3.8 trillion, according to CoinMarketCap.
Cryptocurrencies serve as a method of monetary exchange that enables users to bypass traditional banking systems and conventional payment channels.
The proposed legislative discussions during ‘Crypto Week’ are centered around three key bills:
The first, the GENIUS Act, is designed to clarify the classification of digital assets, distinctly defining when crypto tokens are considered securities or commodities.
This clarification aims to aid startups by providing them with a comprehensive regulatory framework.
The GENIUS Act has already passed through the Senate, signaling some bipartisan support for the legislation.
The second bill, the Clarity Act, seeks to prevent federal agencies from overextending their regulatory authority based on court rulings, ensuring that legislators—not the judiciary—determine the classification and governance of crypto assets.
The third bill, the Anti-CBDC Surveillance State Act, aims to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC).
Proponents of this bill argue that a CBDC might allow for excessive government surveillance of Americans’ financial activities, encroaching on personal privacy rights.
This legislative push represents a notable turnaround for the cryptocurrency industry, which has previously expressed intentions to operate outside the United States due to a perceived hostile regulatory environment.
For years, crypto firms have maintained that US financial regulators, such as the SEC, have implemented varying and often confusing regulations.
Jag Kooner, head of derivatives at Bitfinex, indicated to Reuters that the anticipated shift in legislation could catalyze capital that has previously been sidelined due to regulatory uncertainties to reinvest in the sector.
Despite potential procedural delays, the passage of these bills could ease the path for companies to introduce new digital asset products and facilitate crypto trading.
However, the proposed legislation is facing scrutiny.
Democratic lawmakers are expected to propose amendments to both the GENIUS Act and the Clarity Act.
Critics of the legislative efforts, including Democratic Senator Elizabeth Warren, voice concerns over the degree to which the Trump administration is catering to the cryptocurrency sector.
Warren expressed apprehension that the Republican majority might be leaning towards offering industry handouts.
In a Senate Banking, Housing, and Urban Affairs Committee hearing, Warren urged her colleagues to prohibit public officials—including Trump—from profiting from or endorsing crypto tokens.
Furthermore, she stressed that new crypto regulations should not undermine existing securities laws or permit the volatility of cryptocurrency markets to disrupt traditional financial systems.
Warren also reiterated the need for robust anti-money laundering measures to apply within the cryptocurrency space, emphasizing that users often operate under alphanumeric wallet addresses, complicating the identification of illicit fund sources.
The Biden administration has historically adopted a stringent regulatory approach towards cryptocurrencies, advocating for treating digital assets as securities and subject to stock and bond regulations.
Interestingly, Trump, who once expressed skepticism towards cryptocurrencies, has shifted to become a significant proponent during his presidential campaign last year.
He made history as the first major-party presidential candidate to accept campaign donations in cryptocurrency, demonstrating a commitment to the sector.
During the current 2024 campaign, crypto stakeholders have poured nearly a quarter of a billion dollars into supporting allies in Congress while attempting to challenge opponents.
In March, Trump announced plans to create a crypto reserve comprising five cryptocurrencies—including Bitcoin—to bolster the US stance as the ‘crypto capital of the world.’
In tandem with this, Trump’s family business has introduced various cryptocurrency meme coins, which are often based on internet memes or trends.
One such example includes the launch of $Trump and $Melania.
However, Trump’s ventures have also drawn criticism over potential conflicts of interest, particularly concerning World Liberty Financial, a crypto entity connected to Trump and his sons that reported earnings of $57 million this year.
Additionally, Trump’s company filed documentation with the SEC in July, seeking approval for its own ‘Crypto Blue-Chip ETF,’ an exchange-traded fund that would include an assortment of cryptocurrencies, including Bitcoin.
Since Trump’s re-election in November 2024, Bitcoin has experienced remarkable growth, leaping by 75 percent from approximately $69,539 on Election Day to its current peak.
The cryptocurrency surpassed the $100,000 milestone for the first time last December.
While briefly falling below $90,000 in February due to reactions to Trump’s new tariff announcements, Bitcoin quickly rebounded following the announcement of the crypto reserve initiative.
Bitcoin’s continued rise occurs against a backdrop of broader economic uncertainty, influenced by Trump’s trade tariffs and ongoing global conflicts.
According to Citibank analysts, Bitcoin has shown notable resilience this year, with its price movements correlating closely with macroeconomic developments.
image source from：aljazeera
