"Crypto Week" Transforms the Digital Asset Landscape

The House of Representatives designated July 14-18 as "Crypto Week," during which lawmakers advanced three pivotal pieces of legislation. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act emerged as the crown jewel, receiving bipartisan support with a 308-122 vote in the House before heading to President Trump's desk. The legislation establishes the first federal regulatory framework for stablecoins—a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset—that requires that the stablecoins have a 100% backing with liquid assets such as the US dollar and short-term Treasuries along with monthly public reserve disclosures.

Secondly, the Digital Asset Market Clarity Act (CLARITY) Act represents the crypto industry's most ambitious regulatory framework, transferring oversight of digital assets from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). Passing the House, the legislation is faring well amongst members of both sides of the aisle. As a result, this shift protects the crypto industry from stringent enforcement actions while empowering a commission viewed as more favorable to the sector.

Lastly, the Anti-CBDC Surveillance State Act prohibits the Federal Reserve from issuing or testing a central bank digital currency without explicit Congressional authorization. The legislation, which passed the House by a narrow 219-217 margin, reflects Republican opposition to government oversight of financial transactions through programmable digital currencies.

The legislative momentum catalyzed huge market movements. The total cryptocurrency market capitalization surpassed $4 trillion for the first time on July 18, driven by a rally in altcoins and institutional inflows. Bitcoin reached a new all-time high of $123,205 earlier in the week, while Ethereum surged 22% over five days to approach $3,652. XRP emerged as a standout performer, hitting a new yearly high of $3.64 with a 20% weekly gain.

President Trump officially signed the GENIUS Act into law on July 18, delivering on his campaign promise to make America “the crypto capital of the world.” Speaking at the White House ceremony, Trump described the legislation as “perhaps the greatest revolution in financial technology since the birth of the Internet itself.”

The week also witnessed significant corporate developments that reveal crypto's mainstream acceptance. Standard Chartered became the first global systemically important bank to offer spot trading for Bitcoin and Ethereum through its UK branch, targeting institutional clients including asset managers and corporate treasuries. The move represents a decisive shift toward integrating digital assets into traditional banking frameworks.

The GENIUS Act's passage carries major impacts for dollar dominance and financial infrastructure. Treasury Secretary Scott Bessent emphasized that the legislation will “buttress the dollar's status as the global reserve currency,” and “lead to a surge in demand for US Treasuries, which back stablecoins.” Citigroup analysts project the stablecoin market could expand from its current $265 billion to $37 trillion by 2030.

The regulatory clarity provided by these bills addresses years of uncertainty that had hindered institutional adoption. The legislation establishes clear guidelines for custody, trading and compliance, potentially unleashing significant capital flows into digital assets. Bitcoin funds recorded $5.5 billion in inflows throughout July alone, while Ethereum ETFs attracted $2.9 billion.

However, the legislation faces criticism from consumer protection groups who argue it prioritizes regulatory certainty for the crypto industry at the expense of consumer safeguards. Additionally, critics contend that transferring oversight from the SEC to the CFTC could leave retail investors more susceptible to fraud and manipulation. Thus, the clarity offered by the Trump Administration may not be the Messiah the industry seeks.

Extemp Analysis by: Ty Tan

I am not well versed in the crypto industry, but I think Azzy’s article represents a great introduction to crypto regulation in the US.

Question: Following “crypto week,” legislation, what is the future of crypto regulation in the US? 

AGD: Crypto is such a silly topic, that a joke is practically warranted. 

Background: To cover all your bases, I would make the background two-pronged in the past and present of crypto regulation, then lean into a strong conflict sentence about the uncertainty surrounding the industry.

1. Why Regulating Crypto has been hard

2. What the three new pieces of legislation aim to do in crypto regulation through crypto week

3. How the GENIUS act and the other 2 may help ease uncertainty in the crypto industry

Answer: Still uncertain, as crypto week regulation fails to clear up all loose ends

1. Fragmented Oversight (Split oversight of the SEC and CFTC)

2. Consumer Protection Concerns

3. Enforcement-led Regulation

Analysis + Concluding Thoughts

I think generally, the analysis is pretty straightforward. For point 1, I would talk about how the act breaks up who regulates crypto, creating a fragmented framework for overseeing its regulation. For point 2, I would discuss the issues of consumer protection that remain unaddressed. For the last point, I would emphasize how the industry lacks a clear framework. Thus, the Trump Administration is regulating through enforcement rather than establishing clear guidelines like the EU on crypto regulation, a vast oversight. 

Happy extemping!

Read More Here:

• French Hill House Committee Press Release

• Jasper Goodman, POLITICO

• The White House Fact Sheet

• David Yaffe-Bellany and Robert Jimison, The New York Times

• Manya Saini, Reuters

• Ben Weiss, Fortune