Bitcoin Surges Past $120K as US Congress Prepares for Crypto Week
bitcoin Surges Past $120,000 Amid Regulatory Developments in the U.S.
bitcoin Reaches New Heights
On Monday, bitcoin achieved a historic milestone, surpassing $120,000 per token as U.S. lawmakers geared up to evaluate several proposed bills aimed at establishing clearer regulations for digital currencies. The leading cryptocurrency experienced a 2.5% increase, reaching a peak of $122,105, marking a more than 10% rise over the past week. This surge follows its initial breakthrough of the $100,000 mark in December.
Legislative Push for Crypto Clarity
The U.S. Congress is set to embark on what the House of Representatives has termed “crypto week,” with the goal of positioning the nation as the global hub for cryptocurrency. Tim Chen, the global head of strategy at Mantle, emphasized that clarity in regulations is particularly appealing to investors.
In the coming week, lawmakers will deliberate on several key pieces of legislation, including the Genius Act, the Digital Asset Market Clarity Act, and the Anti-CBDC Surveillance State Act. French Hill, chair of the House Committee on Financial Services, stated earlier this month that they are working on significant legislation to provide a definitive regulatory framework for digital assets.
Impact of Recent Legislation
The recent approval of the Genius Act by the U.S. Senate, which allows private firms to issue stablecoins, is anticipated to boost demand for short-term U.S. government securities, especially amid increasing pressures on long-term debt in global bond markets. Additionally, the Anti-CBDC Surveillance State Act aims to prevent the Federal Reserve from launching a central bank digital currency.
The Clarity Act seeks to delineate the regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission regarding digital assets.
Corporate Adoption of bitcoin
The uptick in bitcoin‘s value coincides with a growing trend of companies worldwide acquiring the cryptocurrency for their corporate reserves, even those not directly involved in the digital asset sector. Darius Sit, founder of QCP, a digital asset market maker, noted that this upward movement is likely to continue, as publicly traded companies with bitcoin holdings will need to keep purchasing to sustain their treasury positions.
Future Outlook for Digital Assets
The anticipated regulatory clarity is expected to further enhance this trend, potentially leading to an influx of capital and new entrepreneurs entering the market. Chen from Mantle remarked that this signifies that the U.S. is ready to embrace business in the digital asset space.
