During 'Cryptocurrency Week', set for July 14-18, several key bills concerning cryptocurrency regulation are expected to be discussed in Congress. These initiatives could significantly affect the market.
GENIUS Act and Strengthening the Dollar
The GENIUS Act, having passed the Senate, is set for a House vote on July 14. This proposal aims to integrate stablecoins, which are pegged 1:1 to the US dollar, into the US financial system. The Trump administration believes this will boost demand for the dollar in the cryptocurrency market, thereby reinforcing its status as the reserve currency.
CLARITY and Anti-CBDC Acts in the Spotlight
The CLARITY Act, awaiting committee approval, aims to resolve the cryptocurrency classification dilemma of securities versus commodities. The legislation outlines a flexible framework for coin classification and consumer protection. The Anti-CBDC Act focuses on halting the Federal Reserve from issuing a central digital dollar. Despite limited progress in recent months, Trump’s stance against CBDCs maintains its symbolic importance within the party.
Impact of Proposed Bills on the Cryptocurrency Market
The simultaneous debate of these three bills during Cryptocurrency Week will clarify the division in Washington. Approval of all legislative proposals could signal clear regulation and bolster expectations for a bull market propelled by dollar-backed stablecoins.
The discussion of these bills could not only change the game for the cryptocurrency market but also provide new expectations for investors. Clear regulations could strengthen the position of the dollar and increase interest in stablecoins.
