"Cryptocurrency Week" in Washington: How three major bills will rewrite the fate of encryption?

This week, Washington has ushered in a critical moment known as "Crypto Week", and the U.S. Congress is accelerating a number of legislations supporting cryptocurrencies, heralding major changes in the cryptocurrency industry. This will not only inject new growth momentum into the industry, but will also significantly reduce its future risks.

Legislative highlights of "Cryptocurrency Week" On July 3, the U.S. House of Representatives passed a low-key but far-reaching press release, officially declaring June 14 as "Cryptocurrency Week" and promising to promote three key cryptocurrency legislations:

• The GENIUS Act: Provides a clear regulatory framework for stablecoins. The bill has been passed by the Senate with 68 votes to 30, including the support of 18 Democratic members, and is one of the most bipartisan bills in the 2025 congressional session. If the House of Representatives passes it unanimously, the bill will be sent to the President for signature and is expected to become the first major cryptocurrency legislation in U.S. history.
• The CLARITY Act: Establishes a comprehensive regulatory framework for crypto assets, aiming to provide clear compliance guidance to market participants.
• The Anti-CBDC Surveillance State Act: Prohibits the United States from creating a central bank digital currency (CBDC) to protect financial privacy and market freedom.

While both the CLARITY Act and the Anti-CBDC Act still require Senate approval, passage of either bill in the House would be a major milestone for the crypto industry.

Why is this legislation important for cryptocurrencies?

A clear regulatory framework will bring double dividends to the cryptocurrency industry:

Driving growth and reducing risk

1. Promote Growth Clear cryptocurrency legislation will incentivize large financial institutions to increase their presence in the crypto space, attract billions of dollars in investment, and guide trillions of dollars in traditional assets into the blockchain-based ecosystem. Imagine if JPMorgan Chase, Bank of New York Mellon, or Nasdaq were free to develop in a clear regulatory environment, what kind of boom would the cryptocurrency market usher in? The answer will be revealed at "Crypto Week".

2. Reduce risks The cryptocurrency industry has been hit hard by the lack of regulation. For example, the collapse of FTX, Luna, Three Arrows Capital and other events not only hit the market hard, but also weakened investor confidence. These failures are largely due to the lack of regulation:

• If there were clear regulations governing exchanges, the collapse of offshore platforms like FTX due to a lack of internal controls and audits would be difficult to occur.
• If large banks are able to custody crypto assets, investors will no longer be deterred by custody risks.
• If the GENIUS Act is implemented sooner rather than later, Ponzi stablecoins like Luna will have no place to stand.

While clear rules cannot completely eliminate market scandals—Bernie Madoff and Credit Suisse in traditional finance are examples—they can significantly reduce the likelihood of such incidents. Over the past 15 years, despite being one of the best performing assets in the world, Bitcoin has experienced seven plunges of more than 70%. Clear regulation will reduce the risk of unexpected crashes caused by unregulated offshore platforms, and the possibility of large market fluctuations will also be reduced. Why do cryptocurrencies have bipartisan support? People often worry that the next administration may reverse the achievements of crypto legislation, but this concern may be unnecessary. Cryptocurrency is one of the few policy issues that has broad bipartisan support in the United States. The passage of the GENIUS Act in the Senate is an example, showing a bipartisan support base. There are multiple reasons behind the bipartisan support:

• Young Voters’ Enthusiasm: Cryptocurrencies are gaining popularity among younger groups, a trend that politicians are finding hard to ignore.
• Financial industry push: The U.S. financial industry, traditionally an important funder of the Democratic Party, is eager to seize the growth opportunities brought by cryptocurrencies. Major financial institutions such as BlackRock, JPMorgan Chase, and Morgan Stanley have already entered the crypto field to varying degrees, and millions of Americans and thousands of companies have invested in it.

This economic incentive ensures the long-term sustainability of cryptocurrency legislation. As the old saying goes, “You can’t put the genie back into the bottle.” Once these bills are passed and signed into law during “Crypto Week,” cryptocurrency will enter a new era of mainstream adoption.

Trends in institutional adoption

 Source: Bitwise Asset Management, data from company filings and presentations. Data as of June 30, 2025. (1) “Cryptocurrency trading and custody” includes trading in cryptocurrency spot, futures, and derivatives.

According to Bitwise Asset Management, as of June 30, 2025, almost all major financial institutions in the United States have been involved in cryptocurrency trading, custody or derivatives markets. This wave of institutional adoption has further consolidated the status of cryptocurrency and made it more difficult to reverse the policy.

"Crypto Week" in Washington is not only a legislative event, but also a turning point for the crypto industry to mature. Through legislation such as the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act, the cryptocurrency market will usher in clearer rules, lower investment risks, and stronger growth momentum. This not only opens up new opportunities for investors and institutions, but also lays the foundation for building an open, transparent, and efficient financial ecosystem. Cryptocurrency is becoming mainstream, and this week's legislative progress will write a new chapter for the future of the industry.