Bitcoin reached an unprecedented milestone on Monday, fueled by investor enthusiasm over potential regulatory clarity as legislation advances in the Republican-controlled Congress.
On that day, bitcoin surged past the $120,000 mark for the first time, peaking at over $123,000 before settling back to closer to $120,000. This remarkable performance has propelled the cryptocurrency’s year-to-date increase to 28.5%.
The rise in bitcoin’s value coincides with the House of Representatives poised to review several cryptocurrency bills this week, which, if enacted, could establish the regulatory framework that the digital assets sector has long desired.
With a growing acceptance of cryptocurrency, Republicans have rallied around the digital asset movement since former President Donald Trump announced his intent to position the U.S. as the “crypto capital of the world” and a leading nation in bitcoin. Lawmakers in both the House and Senate are actively advancing related legislation.
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The Trump family has also ventured into the digital assets space, launching businesses like World Liberty Financial and a meme coin within the past year.
During what Republicans have dubbed “crypto week,” the House is set to deliberate on various pieces of legislation, including the Senate-approved GENIUS Act, aimed at creating federal regulations for dollar-denominated stablecoins.
The proposed GENIUS Act seeks to define payment stablecoins as digital assets designed for transactions, pegged to a stable monetary value. Furthermore, it would outline licensing procedures for companies wishing to issue stablecoins, as well as establish reserve requirements and regulatory standards for these issuers.
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Other relevant bills expected to be discussed include the Digital Asset Market Clarity Act and the Anti-CBDC Surveillance State Act.
According to Simon Peters, an analyst at eToro, the recent weakness of the U.S. dollar, now hovering near a three-year low, has significantly contributed to bitcoin’s latest highs.
Peters further stated that the ongoing discussions in Congress regarding crypto legislation might provide an additional boost to the cryptocurrency’s current upward trajectory.
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“The developments concerning these crypto bills could lend further momentum to the ongoing rally. We’re currently observing,” Peters remarked.
Reuters contributed to this report.
