Original author: Matt Hougan, Chief Investment Officer of Bitwsie
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 there’s one reason that’s underreported: This week is “Crypto Week” in Washington, and you’ll see a ton of pro-cryptocurrency news in the coming days.
I didn’t make this up. On July 3, the U.S. House of Representatives issued a little-reported but significant press release, officially declaring the week of July 14 “Crypto Week” and promising to advance three key crypto bills:
The GENIUS Act: A clear regulatory framework for stablecoins
The CLARITY Act: A general framework for regulating crypto assets
Anti-CBDC Surveillance State Act: A bill that would ban the United States from creating a central bank digital currency
The GENIUS Act has already passed the Senate, so if it makes it through the House, it will go to the president for his signature and could become the first major encryption 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 cryptocurrencies
I firmly believe that the passage of a pro-cryptocurrency bill in the United States will significantly boost the growth of the crypto industry while reducing risks.
The logic for growth is obvious and widely discussed. Clear cryptocurrency legislation will better incentivize large financial institutions to invest in the cryptocurrency space, bring billions of dollars of investment to crypto assets, and guide trillions of dollars of traditional assets onto the blockchain track. If you have ever wondered what would happen to cryptocurrencies if JPMorgan Chase, BNY Mellon, and Nasdaq were allowed to develop freely in the cryptocurrency space, you are about to find your answer.
But I think the bigger development with this legislation is its impact on risk and how it will change the way crypto assets are traded in the future.
One of the biggest headwinds facing crypto is its history of constant crashes: FTX, Luna, Three Arrows Capital, Genesis, Celsius, QuadrigaCX, BitConnect, Mt. Gox.
Each failure dealt a huge blow to the cryptocurrency industry and undermined investor trust, and each failure occurred in large part because of the lack of clear regulation of cryptocurrencies.
If clear regulations allowed safer exchanges to operate stateside, then offshore exchanges like FTX would never have flourished due to their lack of internal controls and shoddy audits.
If large banks can custody crypto assets, investors will not avoid cryptocurrencies due to custody issues.
If we had something like the GENIUS Act, Ponzi stablecoins like Luna would never exist.
Of course, the example of traditional finance proves that clear rules cannot prevent all scandals: Bernie Madoffs fraud case and Credit Suisses series of illegal operations were not prevented by rules. But rules can indeed play a big role.
One challenge that keeps investors away is the large declines we often see in Bitcoin and other crypto assets. Bitcoin is the world’s best performing asset over the past 15 years, but it has also experienced seven declines of more than 70%.
It’s hard for professional investors to buy an asset that could plummet 70% because of an unexpected scandal on some unregulated offshore platform. As Washington, D.C. weighs these cryptocurrency bills, I think the likelihood of these scandals is going to drop dramatically.
Strong crypto legislation won’t eliminate market volatility, but I would venture to say that if it were passed, cryptocurrencies would likely never see another 70%+ drop again.
Why Im not worried about the future of encryption policy
One question people always ask about crypto legislation is: Aren’t you worried that the next administration will reverse these gains?
My answer is: Dont worry.
Contrary to media reports, cryptocurrency is one of the few policy issues that has bipartisan support. The GENIUS Act passed the U.S. Senate by a vote of 68 to 30, with 18 Democrats voting in favor. It is one of the most bipartisan bills of the 2025 congressional session.
There are many reasons for the bipartisan support, including the widespread popularity of cryptocurrencies among young voters. But perhaps the most important reason is the support of the U.S. financial industry, which has traditionally been the main source of funding for the Democratic Party and is eager to seize the growth opportunities in the crypto space.
This economic motivation makes me believe that Washington’s support for cryptocurrencies is sustainable in the long term. As more investors and businesses get involved, it will become increasingly difficult for politicians to oppose cryptocurrencies.
Think about it: Today, almost every major financial institution in the U.S. is involved in cryptocurrencies to some degree. If BlackRock, JPMorgan Chase, and Morgan Stanley, along with thousands of U.S. companies and millions of Americans, are all heavily invested in cryptocurrencies, it will be hard for politicians to change course.
Institutional adoption of cryptocurrencies
Source: Bitwise Asset Management, data as of June 30, 2025. “Cryptocurrency trading and custody” includes trading of cryptocurrency spot, futures, and derivatives.
In other words: once the genie is opened, it can never be closed again. If these bills pass Congress and are signed into law during Crypto Week, we will enter a new era.
Cryptocurrencies are going mainstream, risks are decreasing, and Wall Street is getting in on the action.
No wonder Bitcoin is hitting new all-time highs.
