Crypto markets react positively as US lawmakers pass first federal legislation on stablecoins, sparking investor optimism
Crypto Markets Rally After Regulatory Breakthrough
Bitcoin and Ether posted gains on Friday following a historic move by the US Congress, which passed the first-ever federal legislation regulating stablecoins—a milestone development for the digital asset industry.
- Bitcoin rose 0.6% to $120,162.01 as of 7:00 a.m. IST, according to Bloomberg.
- Ether surged up to 6%, hitting $3,628, its highest level since January.
The crypto rally was fueled by expectations that the new law would legitimize and stabilize the market for dollar-pegged digital tokens, and potentially increase adoption in mainstream finance.
🔑 Key Highlights:
📈 Bitcoin & Ether Price Movement
- Bitcoin has remained above $119,000 after recently touching a new all-time high of ~$123,000 on July 14.
- Ether’s sharp rise reflects renewed investor confidence in altcoins amid improving regulatory clarity.
🏛️ What the Stablecoin Bill Means
- The stablecoin bill, passed with bipartisan support (308–122 in the House) and cleared by the Senate, is expected to become law shortly.
- The law introduces federal and state oversight on dollar-linked stablecoins, paving the way for more secure and regulated use in financial systems.
📢 Backed by Trump and Republicans
- The bill is the centerpiece of Trump’s “Crypto Week” initiative, which aims to provide clear rules for the crypto industry.
- A broader crypto market structure bill was also passed by the House and awaits Senate review.
💡 Why It Matters:
- Stablecoins, though widely used in crypto transactions, have lacked formal regulation—this bill changes that.
- It could open the door for institutional and business adoption, allowing stablecoins to be used in mainstream payments, cross-border settlements, and DeFi (decentralized finance) applications.
- The legislation is seen as a turning point for the crypto sector, which has long sought legal clarity from US regulators.
