US House Gears Up for Landmark Crypto Regulation Week
The U.S. House of Representatives is poised to hold a crucial series of votes on key cryptocurrency regulation bills the week of July 14th. This could be a pivotal moment for the digital asset industry.
A Historic Week for Crypto?
The cryptocurrency market is bracing for potential volatility as the House prepares to deliberate on three significant bills addressing digital asset regulations.
House Financial Services Committee Chairman French Hill and House Agriculture Committee Chairman Glenn ‘GT’ Thompson, in coordination with House leadership, have officially designated the week of July 14th as ‘Crypto Week’.
Crypto Week is expected to highlight digital asset regulations and advance key legislative efforts in the cryptocurrency industry. Lawmakers will consider the GENIUS Act, the CLARITY Act, and the Anti-Surveillance CBDC Act, all within the same week. This raises expectations that crypto regulations could reach the President’s desk before the August recess.
“We are taking historic steps to ensure the United States remains the global leader in innovation, and I look forward to ‘Crypto Week’ in the House,” said Representative French Hill.
Key Bills Under Consideration
The GENIUS and CLARITY Acts focus on regulating cryptocurrency issuance and establishing a comprehensive regulatory framework for digital assets in the U.S.
GENIUS Act: Stablecoin Regulation
The GENIUS Act specifically targets stablecoins, requiring issuers to maintain full reserves backed by the Federal Reserve. It also mandates compliance with anti-money laundering (AML) laws to ensure consumer protection and market stability.
If passed, this legislation could pave the way for stablecoins to evolve “from the monetary rail of crypto to the monetary rail of the Internet.” Some predict the stablecoin market could reach a valuation of $4 trillion in the next 10 years, while others are more conservative.
CLARITY Act: Market Structure
The CLARITY Act, also known as the market structure bill, aims to provide clear guidance for the broader cryptocurrency market, encompassing cryptocurrencies, digital commodities, and decentralized finance (DeFi).
The bill also clarifies the regulatory jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over cryptocurrencies.
Anti-Surveillance CBDC Act: Limiting Federal Reserve Power
The Anti-Surveillance CBDC Act seeks to restrict the Federal Reserve (Fed) from developing, issuing, or using a Central Bank Digital Currency (CBDC) for monetary purposes.
Potential Market Impact
Progress on each of these proposed bills could trigger a surge in major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, BNB, Solana (SOL), and Tron (TRX). Most of these Layer 1 tokens could benefit from the legislation, as they lead in various key indicators in the stablecoin and DeFi sectors.
However, caution is advised regarding price movements. Cryptocurrencies sometimes follow a “buy the rumor, sell the news” pattern, where the market rises in anticipation of a key bullish event and then begins to fall as the event approaches.
By reducing long-standing regulatory uncertainty, this wave of cryptocurrency legislation could pave the way for greater participation from institutional and traditional investors.
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