Bitcoin’s price hit a record high against the U.S. dollar Monday morning, surpassing the $120,000 mark. This comes at the beginning of what the House of Representatives is calling “Crypto Week” — when the lawmakers are set to vote on cryptocurrency legislation.
Here’s what to know.
This week, representatives will vote on the GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins. The federal legislation seeks to regulate the creation and use of stablecoins — digital currencies designed to maintain a stable value by being tied to assets like the U.S. dollar.
With this federal framework, only approved banks, companies, and entities could issue stablecoins under strict conditions, such as full asset backing. Both federal and state authorities would have oversight to monitor transparency, compliance, and consumer protection.
Since Donald Trump won the 2024 presidential election, Bitcoin’s year-on-year price has more than doubled. He is known for being a digital asset-friendly president, with his family running crypto firm World Liberty Financial.
After the Senate passed the GENIUS Act 68-30 last month, the president wrote in a Truth Social post that the bill would “make America the UNDISPUTED Leader in Digital Assets.”
Several factors are contributing to Bitcoin’s record high price, including increased demand, positive regulations and institutional confidence. Here’s a quick breakdown:
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Federal policies: Anticipation of favorable legislation, such as the GENIUS Act, for cryptocurrency regulation boosts confidence.
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ETF approval: Strong inflows into Bitcoin-focused exchange-traded funds (ETFs) indicate growing institutional involvement.
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Corporate adoption: Companies allocating funds to Bitcoin signal mainstream acceptance.
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Market movements: Short positions (bets on price drops) have been liquidated, resulting in a price increase.
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Improved sentiment: General optimism about cryptocurrency, along with reduced global financial tensions, is supporting the surge.
The Digital Asset Market Clarity Act (CLARITY Act) seeks to bring clarity, simplify compliance and both confidence in digital financial technologies. If passed, it would:
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Define how digital assets should be classified (e.g., commodities vs. securities).
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Split oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to avoid regulatory confusion.
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Promote transparency, innovation, and investor protection in the growing digital asset market.
