This past week saw numerous significant developments in the world of cryptocurrencies, including the passage of important legislation in the U.S., record performances by Bitcoin and Ethereum, and significant asset movements.
US House Approves Landmark Crypto Legislation Amid Political Tensions
The U.S. House of Representatives passed three significant cryptocurrency bills with bipartisan support ahead of its August recess. The CLARITY Act (294-134 vote) establishes regulatory frameworks for crypto markets, while the GENIUS Act (308-122) focuses on stablecoin oversight. The more contentious Anti-CBDC Surveillance State Act (219-210) prohibits federal development of a central bank digital currency. Although substantial Democratic support existed for the first two bills, the anti-CBDC measure highlighted stark partisan divides.
Grayscale Files IPO as Crypto Market Grows
Grayscale, a leading crypto asset manager, has filed a confidential IPO application in the United States to raise public funding through a stock offering or convertible bonds. This move comes a few weeks after stablecoin issuer Circle debuted on the NYSE with a capitalization of $1.05 billion, where its value was valued at $6.9 billion. Both applications align with the expected regulatory reforms in the United States, indicating an increase in institutional trust in cryptocurrencies.
Ethereum’s Historic Short Squeeze Fuels $4,000 Price Target
Ether (ETH) is experiencing a record-breaking short squeeze, with analysts predicting a surge to $4,000. A 10% increase could liquidate $1 billion in leveraged short positions, enhancing gains. ETH has rallied 20% weekly and 150% from its 2025 low, nearing $3,610. Meanwhile, Bitcoin’s market dominance has fallen to 61.4%, leading to capital shifts towards altcoins like ETH and XRP.
The week was pivotal for the cryptocurrency industry, with the passage of key U.S. legislation and a dynamic rise in Bitcoin and Ethereum prices, reflecting growing interest from both institutional and individual investors.