ethereum Surges as U.S. House Approves Crypto-Friendly Legislation

Key Developments in Cryptocurrency Legislation

ethereum‘s Price Surge

ethereum, the second-largest cryptocurrency by market capitalization, has experienced a notable increase following the U.S. House of Representatives’ approval of three bills aimed at enhancing the legitimacy of digital assets.

bitcoin‘s Current Standing

bitcoin, which recently reached a peak of $120,000, is currently trading slightly below that mark at approximately $118,000. The overall cryptocurrency market capitalization is nearing $4 trillion, reflecting a robust interest in digital currencies.

Legislative Impact on Cryptocurrency

The GENIUS Act

Former President Donald Trump, who has expressed ambitions for the U.S. to become the leading hub for cryptocurrency, is anticipated to sign the GENIUS Act into law. This legislation lays out a framework for private entities to create stablecoins—digital currencies pegged to traditional currencies like the U.S. dollar.

Market Reactions

Shares of Circle Internet Group, the second-largest stablecoin issuer in the U.S. after Tether, have surged over 3%. The company’s stock has increased significantly since its initial public offering, rising more than six times from its debut price of $31. In contrast, Tether may not benefit as much from the GENIUS Act, as it is backed by a mix of assets including bitcoin, gold, and Treasury bills, rather than solely state currencies.

Stock Market Trends

Crypto-Related Stocks on the Rise

In premarket trading, stocks linked to the cryptocurrency sector have shown positive movement. Companies such as MicroStrategy, known for its bitcoin treasury strategy, along with crypto mining firms Marathon Digital Holdings and Riot Platforms, as well as Coinbase, the leading U.S. cryptocurrency exchange, have all seen slight increases of less than 1%.

Upcoming Legislative Actions

Additional Bills Awaiting Senate Approval

During a week dubbed “Crypto Week” by the House, two additional bills were passed that still require Senate approval. The CLARITY Act aims to create a regulatory framework for cryptocurrencies, while the Anti-CBDC Surveillance State Act seeks to prevent the Federal Reserve from launching a central bank digital currency.

Stock Market Overview

Futures Point to Positive Trends

U.S. stock futures are showing modest gains after the S&P 500 and Nasdaq Composite reached new record highs on Thursday. Futures for the Nasdaq, S&P 500, and Dow Jones Industrial Average are all indicating an increase of 0.1%.

This legislative momentum and market activity reflect a growing acceptance and integration of cryptocurrency within the broader financial landscape.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.