The United States Congress is scheduled to debate new cryptocurrency laws this week, potentially pushing digital assets further into the mainstream. This move could add to the price momentum that recently drove Bitcoin to record highs, while also reigniting concerns about whether these regulatory changes might unfairly benefit ventures associated with the Trump family.
Republican legislators have designated this week as “crypto week” and plan to advance three bills in the House of Representatives. These bills aim to clarify ambiguities in cryptocurrency regulation, promote the use of stablecoins (digital currencies pegged to assets like the US dollar), and prevent the establishment of central bank digital currencies based on privacy concerns. Julia Cartwright, a senior research fellow at the American Institute for Economic Research, stated that “The lack of regulatory clarity in this space has absolutely paralysed the industry,” adding that “Getting these regulations on the books is huge.”
Bitcoin reached a record high of $US123,205 on Monday before retracting slightly to around $US120,100 by 5pm in New York (7am AEST on Tuesday). This reflects a 9 per cent increase over the past five days and a surge of approximately 76 per cent since last November’s election. The rise has been attributed to buying activity by institutional investors and optimism surrounding potential regulatory conditions.
Stablecoins are cryptocurrencies designed to minimise price volatility by being pegged to a stable reserve asset such as the US dollar. The proposed legislation seeks to provide a clear regulatory framework for these digital assets, potentially encouraging wider adoption and use.
