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Bitcoin surpasses $120k as Congress prepares for Crypto Week

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The United States is preparing this week for what is being referred to in the media and political circles as “Digital Assets Week,” an initiative by the U.S. House of Representatives aimed at discussing and potentially passing a package of laws that would form a comprehensive regulatory framework for the digital asset industry in the country. This week is seen as a pivotal turning point that could position the U.S. as a global leader in the cryptocurrency sector by adopting long-awaited clear regulations for investors and companies operating in the space.

In this context, Congress is set to debate three key legislative proposals over the next five days. The first is the Digital Asset Market Structure Clarification Act, which seeks to establish the legal foundation for regulating digital currencies and to clearly allocate regulatory authority between agencies primarily the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in order to eliminate longstanding confusion and regulatory overlap that has stifled industry growth for years.

The second is the National Stablecoin Innovation Act, which represents the first comprehensive federal initiative to regulate stablecoins used in payment systems. It aims to allow private companies to issue such tokens within a well-defined legal framework.

The third bill is the Anti CBDC Act, designed to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) for general public use, citing concerns related to privacy and surveillance.

This legislative momentum has had a direct impact on market performance, with Bitcoin reaching a new all-time high of $122,105, marking a weekly gain of over 10%. The cryptocurrency crossed the $120,000 threshold for the first time, continuing a rally that began late last year when it surpassed $100,000 for the first time.

Analysts attribute this surge to growing optimism about the future of the market amid signs of regulatory clarity. One financial sector expert noted, “What’s attracting capital right now is real progress toward transparent regulation that reduces risk and supports innovation even if it’s still in the early stages.”

The Chairman of the House Financial Services Committee confirmed that Congress is moving forward with historic legislation that will create a safe and investment friendly regulatory environment, stating that the U.S. aims to become the “digital capital of the world.”

Supportive remarks from prominent political figures, including the former U.S. President who called one of the proposed laws a “great bill” have further energized the markets. Investors interpreted these signals as a green light to buy, resulting in sharp gains across various asset classes, especially cryptocurrencies.

Amid this political and legislative momentum, major corporations are accelerating their purchases of Bitcoin and adding it to their balance sheets even those outside the tech or crypto sectors. Some analysts believe this trend will likely continue, particularly in light of new fundraising rounds and the need for firms to maintain exposure to digital assets.

As these laws approach passage, the U.S. market is expected to witness a new wave of capital and talent flowing into the digital asset sector, potentially paving the way for a large-scale economic transformation and strengthening the United States’ position as a global hub for the digital economy.

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