Original Title: It's "Crypto Week" in Washington

Original Author: Matt Hougan, Chief Investment Officer at Bitwise

Original Translation: Luffy, Foresight News

Want to know why Bitcoin hit an all-time high last week?

There are many reasons, including continued demand from institutional investors and corporate treasuries. But one reason that has not been widely reported is that this week is "Crypto Week" in Washington, and in the coming days, you will see a lot of news supporting cryptocurrency.

This is not something I made up. On July 3, the U.S. House of Representatives released a little-noticed but impactful press release, formally declaring the week of July 14 as "Crypto Week" in Washington and committing to advancing three key crypto bills:

· The "GENIUS Act": A clear regulatory framework for stablecoins

· The "CLARITY Act": An overall framework for regulating crypto assets

· The Anti-CBDC Surveillance Act: A bill prohibiting the U.S. from creating a central bank digital currency

The "GENIUS Act" has already passed in the Senate, so if it passes smoothly in the House, it will be sent for presidential signature, potentially becoming the first major crypto bill in U.S. history.

The "CLARITY Act" and the "Anti-CBDC Act" still require Senate approval, but passage of either bill in the House would be a significant milestone.

Why This Is So Important for Cryptocurrency

I firmly believe that once U.S. cryptocurrency-supportive legislation is passed, it will both significantly drive industry growth and reduce risk.

The logic for growth is obvious and widely discussed. Clear cryptocurrency legislation will better incentivize major financial institutions to venture into the crypto space, bringing billions of dollars of investment to crypto assets and guiding trillions of dollars of traditional assets onto the blockchain track. If you've ever wondered what would happen to cryptocurrency if JPMorgan Chase, the Bank of New York Mellon, and Nasdaq were free to operate in the crypto space, you're about to find out.

But I believe the larger development of this legislation is its impact on risk and how it will alter the way future crypto asset transactions take place.

One of the biggest hurdles that cryptocurrency faces is its history of constant collapses: FTX, Luna, Three Arrows Capital, Genesis, Celsius, QuadrigaCX, BitConnect, Mt.Gox.

Every single failure has had a significant impact on the cryptocurrency industry and has reduced investor trust. And each failure, to a large extent, has been due to the lack of clear regulation in the cryptocurrency space.

If clear regulations allow for more secure exchanges to operate on U.S. soil, then offshore exchanges like FTX would never thrive because they lack internal controls and undergo rough audits.

If large banks can custody crypto assets, investors would not shy away from cryptocurrency due to custody issues.

If we had a bill similar to the "GENIUS Act," then Ponzi stablecoins like Luna would never exist.

Of course, examples from traditional finance prove that clear rules cannot eliminate all scandals: Bernie Madoff's Ponzi scheme, a series of compliance breaches at Credit Suisse were not prevented by regulations. But regulations can indeed have a significant impact.

One challenge that makes investors hesitant is that we often witness significant drops in the price of Bitcoin and other crypto assets. Bitcoin has been the best-performing asset globally in the last 15 years, but it has also experienced seven drops of over 70%.

For professional investors, buying an asset that could plummet by 70% due to an unexpected scandal on an unregulated offshore platform is a tough call. As Washington weighs these cryptocurrency bills, I believe the likelihood of such scandals will plummet.

Robust cryptocurrency legislation will not eliminate market volatility, but I dare say, if the bills pass, cryptocurrency might never experience a drop of over 70% again.

Why I'm Not Worried About Crypto Policy's Future

One common question about crypto legislation is: Aren't you worried the next administration will reverse these gains?

My answer is: Not worried.

Contrary to media reports, cryptocurrency is one of the few policy topics that enjoy bipartisan support. The "GENIUS Act" passed the U.S. Senate with a vote of 68 to 30, with 18 Democratic senators voting in favor. It was one of the most bipartisan bills of the 2025 congressional session.

There are many reasons for bipartisan support, including the widespread popularity of cryptocurrency among young voters. But perhaps the most crucial reason is the support from the U.S. financial industry—traditionally, a significant source of funding for the Democratic Party, and they are keen to seize the growth opportunity in the crypto space.

This economic incentive makes me believe that Washington's support for cryptocurrency is sustainable in the long run. With more investors and businesses entering the space, politicians will find it increasingly difficult to oppose cryptocurrency.

Just think about it: Today, nearly all major financial institutions in the United States have dabbled in cryptocurrency to some extent. If BlackRock, JPMorgan Chase, and Morgan Stanley, along with thousands of U.S. companies and millions of Americans, have made large-scale investments in cryptocurrency, then it will be hard for politicians to change course.

Institutional Adoption of Cryptocurrency

Source: Bitwise Asset Management, data as of June 30, 2025. "Cryptocurrency trading and custody" includes trading of cryptocurrency spot, futures, and derivative products.

In other words: Once the genie is out of the bottle, it can't be put back in. If these bills pass through Congress during "Crypto Week" and are ultimately signed into law, we will enter a new era.

Cryptocurrency is moving towards the mainstream, risks are decreasing, and Wall Street is heavily involved.

No wonder Bitcoin has hit an all-time high.

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