Bitcoin Tops $120,000 With Congress Poised to Consider Key Crypto Bills

Nothing to boost an asset class like the most powerful legislative body in the world holding a week in your honor. Bitcoin, the world’s largest cryptocurrency, vaulted over $120,000 for the first time on Monday, the opening day of what Republicans in the House of Representatives have dubbed “Crypto Week.”

Lawmakers are poised to consider three major pieces of legislation that supporters say will “make America the crypto capital of the world.” Those in less sexy asset classes will have to dream of a future Fixed Income Friday on Capitol Hill.

Triple Play

Bitcoin, which is up roughly 30% this year and did pare its gains back below $120,000, was not alone, as other leading cryptocurrencies Ether, Solana and Chainlink advanced on Monday. The trio of bills before Congress — the CLARITY Act, the Anti-CBDC Surveillance State Act and the Senate’s GENIUS stablecoin package.

The CLARITY Act, if passed, would lay the groundwork for a regulatory framework for digital assets and cryptocurrencies. Providing this kind of certainty would likely encourage traditional institutional investors like asset management firms, hedge funds, and banks — some of which have kept a cautious approach to crypto due to a lack of clarity around legal compliance — to grab their knees and plunge in. The Anti-CBDC Surveillance State Act would prohibit the Federal Reserve from issuing its own central bank digital currency – if passed, that would amount to lawmakers articulating a preference for market-driven innovation in the crypto space over state-led initiatives. 

Then there’s arguably the most important bill that’s fuelling the crypto rally: the GENIUS Act. This bill would establish a federal framework for stablecoins, a form of cryptocurrency that has a constant value, often via a 1:1 peg to the dollar. The bill would require them to be backed by liquid assets like dollars or Treasury bonds, and issuers would have to disclose their reserve holdings. Stablecoin use has grown considerably in recent months, and many believe they could be used for instant payments — Walmart and Amazon are reportedly considering their own stablecoins, which would allow them to skip billions in traditional financial transaction fees. The optimism is already registering in crypto and traditional markets:

• The global cryptocurrency market, including Bitcoin, rose 3.5% Monday to reach a total valuation of $3.8 trillion.
• On Thursday and Friday last week, inflows to US-based Bitcoin ETFs topped $1 billion, something Nova Dius Wealth President Nate Geraci noted has only happened seven times since their January 2024 debut. Bloomberg noted last week that the world’s largest asset manager, BlackRock, is now generating more revenue from its Bitcoin ETF than its S&P 500 fund.

Strategic Antics: The GENIUS Act received bipartisan support in the Senate and is most likely to reach President Donald Trump’s desk first. But many Democrats are opposed, as well as to the CLARITY Act, which critics have argued contains threadbare protections for consumers and against fraud. In other words, prepare for an engrossing series of hours-long CSPAN still-camera shots of debates over amendments.