Bitcoin Soars to New Heights as U.S. Congress Set for Pivotal Crypto Policy Decisions

Bitcoin Hits Record High as US Congress Gears Up for Major Crypto Policy Push

July 12, 2025, 09:43 IST
Edited By Archana Shukla
Photograph: Reuters

Bitcoin surged to an all-time high as the US Congress prepares for what many are calling “crypto week,” a pivotal period focused on shaping the future of digital asset regulation. This awaited legislative push has already propelled the leading cryptocurrency to new heights, signaling growing investor optimism about potential regulatory clarity.

Crypto Markets Rally on Policy Anticipation

On Friday, Bitcoin climbed 3.3 percent to trade at $117,333.32, extending its year-to-date gains to 26 percent. The rally was broad-based across the cryptocurrency market, with notable increases in tokens such as ether, XRP, and solana. This enthusiasm also translated into strong inflows into crypto-linked exchange-traded funds (ETFs), reflecting investor confidence ahead of critical policy discussions.

According to CoinMarketCap, the total market capitalization of cryptocurrencies has now swelled to approximately $3.67 trillion. Market participants see this surge as a speculative bet connected to Washington’s ambitious plans to implement comprehensive crypto regulation, aiming to provide the long-sought clarity the industry needs.

A Long-Awaited Policy Framework

Starting Monday, the US House of Representatives will debate a series of cryptocurrency-related bills, with two key pieces of legislation taking center stage: the Genius Act and the Clarity Act.

The most prominent is the Genius Act, which aims to establish the first comprehensive federal regulatory framework for stablecoins. Stablecoins are cryptocurrencies designed to maintain a steady value, commonly pegged 1:1 to the US dollar. Widely used by traders to facilitate fast and cheap movement of funds across digital assets, stablecoins have seen a significant spike in usage in recent years.

The Genius Act proposes that stablecoin issuers fully back their tokens with liquid assets such as US dollars or short-term Treasury bills. Furthermore, issuers would be mandated to disclose the composition of their reserves publicly on a monthly basis. The bill has garnered bipartisan support in the Senate, drawing backing from both Democrats and Republicans. It is expected to pass the House next week and then head to President Donald Trump, who has expressed strong support and pledged to sign it into law.

Expanding Regulatory Oversight: The Clarity Act

Alongside the Genius Act, the Clarity Act seeks to create a broader regulatory framework for cryptocurrencies by expanding the oversight of the Commodity Futures Trading Commission (CFTC). A major objective of this bill is to resolve a persistent debate over how cryptocurrencies should be classified — either as securities, falling under the Securities and Exchange Commission (SEC), or as commodities regulated by the CFTC.

The crypto industry has pushed for most tokens to be recognized as commodities to simplify listings and trading on exchanges. This debate intensified during the Biden administration, amid complaints by industry players about aggressive SEC enforcement actions. If passed in the House, the Clarity Act would proceed to the Senate for approval before potentially reaching President Trump’s desk.

Trump’s Pro-Crypto Stance

President Trump has embraced cryptocurrency as part of his 2025 political platform, branding himself the “crypto president” and vowing to overhaul the regulatory landscape to favor the digital asset sector.

Trump maintains ties to various crypto ventures, including World Liberty Financial, a platform managed by his sons, Eric and Don Jr. These connections have raised concerns regarding potential conflicts of interest, although the White House has dismissed such worries by emphasizing that Trump’s assets remain in a trust controlled by his children.

Bullish Momentum Tempered by Caution

The crypto industry is watching “crypto week” with hopeful anticipation. Analysts suggest that even if the bills face delays, the bipartisan legislative focus alone can bolster market sentiment.

“Investors are racing to take positions ahead of the extra publicity this event could attract,” noted Dan Coatsworth, investment analyst at AJ Bell.

Bitcoin’s rally has driven increased buying activity across major altcoins, with ether rising more than 5 percent and XRP jumping nearly 10 percent on Friday. However, not all voices are optimistic. Some experts caution against overextending confidence, warning that rapid integration between crypto and traditional finance might introduce new risks.

Dirk Willer, global head of macro strategy at Citi, commented, “The regulatory backdrop has supported prices, and attention has turned to bitcoin’s role in portfolios, with some likening the crypto-asset to ‘digital gold.’ This moniker is likely premature.”

Critics within Congress, including Senator Elizabeth Warren, have warned that the Republican-led legislative effort risks handing the crypto industry its entire wish list without adequate consumer protections.

What Lies Ahead?

If the bills pass the House as anticipated, the Genius Act likely will become law after receiving President Trump’s stamp of approval. Meanwhile, the Clarity Act will face a more challenging path through the Senate, where negotiations could slow progress.

For now, crypto markets are buoyed by the prospect of securing a clearer, more favorable regulatory framework that has eluded the industry for years. As Washington braces for a crucial vote, investors remain vigilant, eager to see whether “crypto week” will deliver on its promises and sustain the sector’s newfound momentum.

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Trending Topics: Bitcoin | US Cryptocurrency | US GENIUS Act
Photography Credit: Reuters
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