Crypto week is about to kick off in Congress. Here's what it could mean for the market.
Crypto policy has been a key area of focus for the Trump administration, creating a steady tailwind for the market in recent months. Bitcoin prices recently surged to new record highs as it passed $120,000, sparking bullish predictions for how far the rally could go.
Now, a slew of bills aimed to bolstering digital assets could create a fresh positive catalyst for prices.
This week, House Committee on Financial Services Chairman French Hill recently stated that "The House of Representatives looks forward to considering the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate's GENIUS Act as part of Congress' efforts to make America the crypto capital of the world."
The CLARITY Act is aimed at defining regulatory oversight for digital assets, while the Anti-CBDC Surveillance State Act would limit the power of the Federal Reserve to create a central bank digital currency.
Already passed in the Senate, the GENIUS Act would establish a regulatory framework for stablecoins.
Here's what crypto pros told Business Insider about what to expect from this week's legislative crypto bonanza.
What regulator changes are being proposed?
While no new crypto bills have been fully passed yet, optimism for legislative support has helped fuel gains for bitcoin and other cryptos this year.
"This growing optimism suggests that clearer rules could restore trust and bring cautious investors back into the fold," Adrian Fritz, head of research at 21Shares, told BI. "US crypto stocks and bitcoin are rallying as traders position themselves ahead of next week's expected publicity."
Fritz also cited stronger global liquidity and lower geopolitical tensions as contributing factors to bitcoin's latest rally past $120,000, but still sees the crypto push on Capitol Hill as an important catalyst.
"[The CLARITY Act] is incredibly important to help further institutionalize and onshore secondary market activity in the US. This should help improve counterparty risk, improve liquidity, and improve the ability for investors seeking risk managed solutions to get them in well regulated vehicles," Tony Fenner-Leitão, president at Cambrian Asset Management, said.
Which cryptos are most likely to benefit?
A consensus among many crypto experts is that stablecoins are likely to see significant momentum as crypto week unfolds. This could prove highly beneficial to companies like Circle and Coinbase, which have high exposure to the fiat-backed digital assets.
Fritz said that under the GENIUS Act, stablecoins would be recognized as programmable money, likely leading to further integration into payment systems.
"The stablecoin sector is thus positioned for significant expansion, likely experiencing increased institutional adoption for remittances, e-commerce transactions, and decentralized finance (DeFi) collateral" he said.
He added that blockchain networks, such as ethereum and solana, are likely to rise benefit as well, since they serve as the underlying infrastructure for stablecoins.
Chris Kline, COO & co-founder of BitcoinIRA, also flagged a possible boost to stablecoins, highlighting the benefits for stablecoin infrastructure and compliance frameworks that can stem from further regularity clarity.
"Stablecoins and tokenized assets represent the most immediate growth opportunities," he told Business Insider. "These sectors will likely experience complementary rather than competitive development."
Doug Carrillo, co-founder and Chief Strategy Officer of Bitstop & GoldATM predicts that crypto week will spur growth for stablecoins but also highlighted another asset class that's likely to benefit.
"Tokenized assets (treasuries, real estate, gold, etc.) will experience accelerated growth as clear frameworks reduce perceived legal risks, opening opportunities for new markets," he stated.
What will be the biggest developments?
All three crypto bills being mulled in Congress are expected to garner strong support, and the market implications for such a vote of confidence from lawmakers are powerful.
"Passage in the House would mark a historic milestone as the most comprehensive crypto legislation package ever approved by a chamber of Congress," Fritz noted.
Sahel Ahyaie Assar, an international tax attorney who serves as blockchain and digital asset practice group leader at Buchanan Ingersoll and Rooney, sees legislation on stablecoins as being particularly important this week.
"As currently drafted, the GENIUS Act's treatment of decentralized protocols and 'digital commodity' classification will be most impactful. If DeFi protocols receive treatment akin to commodities or software platforms—as distinguished from securities issuers—it may change the entire posture of the U.S. crypto enforcement regime," she stated.
Anthony Tuths, a tax principal and digital asset practice leader at KPMG, predicts that even more changes will be coming for the financial sector in the wake of crypto week.
"As the financial system adopts blockchain technology, you will see markets trade 24/7 and the back-office related support shrink," he stated. "The programmable money and intra-day collateral movements will save large financial institutions billions due to greater capital efficiency."
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