Topline
On Wednesday, a surge in several cryptocurrencies and stocks linked to the crypto industry ignited a wave of optimism among investors. This was largely due to comments made by former President Donald Trump, who indicated that a majority of Republican lawmakers, previously at odds with pro-crypto measures, would now support the GENIUS Act and other relevant legislation in the House.
Key Facts
The price of Bitcoin climbed back above $119,000 on Wednesday morning, registering a 1.5% increase. Additional cryptocurrencies also saw gains, including Ether (up 5.9%), XRP (up 2.4%), Solana (up 4.8%), and Binance’s BNB (up 1.9%).
In a post on Truth Social late Tuesday, Trump mentioned a “short discussion” he had with 11 of the 12 Republicans who had opposed advancing the GENIUS Act, the Digital Asset Market Clarity Act, and the Anti-CBDC Surveillance State Act. He stated that these lawmakers expressed agreement to support the bills in a subsequent vote.
Shares of Circle, a prominent stablecoin issuer, added 4% in premarket trading, recovering much of the losses incurred the previous day. Other companies in the crypto space also experienced gains, including Coinbase (up 1.1%), BitMine (up 17%), SharpLink (up 15%), and Bit Digital (up 5%).
What To Watch For
Attention is now focused on whether the three proposed bills will successfully advance in the House. Trump noted that Speaker Mike Johnson (R-La.) participated in discussions with House Republicans and expressed readiness to schedule the vote as soon as possible.
Key Background
In recent weeks, Trump has been actively promoting pro-crypto legislation. He emphasized on Truth Social that “ALL REPUBLICANS” should support these measures. Earlier, House Republicans had designated the week of July 14 as “Crypto Week,” during which they voted on bills intended to position the U.S. as the global hub for cryptocurrencies.
The GENIUS Act would implement the first federal regulations for stablecoin issuers, while the Digital Asset Market Clarity Act aims to clarify which agencies govern specific digital assets. Additionally, the Anti-CBDC Surveillance State Act seeks to prohibit the Federal Reserve from introducing a central bank digital currency (CBDC).
Why Did Legislators Oppose Trump’s Crypto Bills?
Some legislators expressed opposition to Trump’s crypto initiatives. Representative Marjorie Taylor Greene (R-Ga.) stated that her vote against advancing the bills stemmed from the refusal of Speaker Johnson to allow House members the opportunity to propose amendments. Greene highlighted that while the GENIUS Act failed to impose a ban on a CBDC, the Anti-CBDC Surveillance State Act clearly did so.
Moreover, several Democrats raised concerns regarding the bills and Trump’s connections to the cryptocurrency industry. They specifically pointed to Trump’s associations with World Liberty Financial, which issued the USD1 stablecoin. A group of House Democrats have formally requested the Treasury Department to release documents linked to investigations on WLF and Trump-branded meme coins, claiming there could be instances of bribery, corruption, and conflicts of interest involved.
Senator Elizabeth Warren (D-Mass.) went so far as to argue that the initial text of the GENIUS Act would effectively “supercharge Donald Trump’s corruption.”
Further Reading
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