Bitcoin has record-breaking rally as lawmakers weigh 3 key bills

The price of bitcoin, the world’s most popular cryptocurrency, marked another significant milestone Monday following record-breaking highs last week as lawmakers debate three pieces of legislation that will shape the market, experts said.

“Bitcoin is moving up, silver is moving up, gold is moving up,” said Andrew Rocco, stock strategist at Chicago-based Zacks Investment Research. 

The rally on the digital currency, which hit the $120,000 mark for the first time Monday, comes during "crypto week," Rocco said, when the House of Representatives is scheduled to debate legislation that could create a legal framework for crypto exchanges and issuers to operate in. On Friday, bitcoin broke $118,000 for the first time.  

“The Trump administration and politicians on both sides of the aisle are pushing for that regulatory clarity this week,” Rocco said, but critics of the proposed bills say they do little to protect consumer investors and give issuers too much freedom.

“These bills could sow the seeds of the next financial crisis because they are regulatory wolves in sheep’s clothing," said Mark Hays, associate director for cryptocurrency and financial technology at Americans for Financial Reform, a progressive non-profit that advocates for stronger Wall Street regulations. 

The House will weigh three crypto bills this week:

• The GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act, which establishes regulations for stablecoins, a type of cryptocurrency usually pegged to the U.S. dollar.
• The Clarity Act, which creates a framework for digital currencies broadly.
• The Anti-CBDC Surveillance State Act, a bill that would prevent the Federal Reserve from issuing its own central bank digital currency (CBDC).

Locally, New York Attorney General Letitia James early this month urged congressional leaders to strengthen the GENIUS Act to regulate issuers of stablecoin, such as banks, to combat the anonymous use of the currency in criminal activity and transactions.

Here are three things to know about bitcoin’s rally and crypto week:

Why is the price of Bitcoin soaring?

One major factor behind the recent rally on bitcoin, Rocco said, is that investors and crypto businesses believe that the week’s scheduled bill votes will bring regulatory clarity.

For years, many in the industry have complained that “one of the main things that’s been holding them back is the lack of regulatory clarity,” Rocco said. Without regulation, it makes it harder for businesses in the market to know exactly what they can and cannot do.

Investors are also turning to bitcoin, he said, as a safe haven investment in the wake of Congress’ approval of President Donald Trump’s "one big beautiful bill." The bill is expected to add $3.3 trillion to the national debt, according to the Congressional Budget Office.

“These assets are betting on a weakening U.S. dollar,” Rocco said.

Additionally, bitcoin has been impacted by the growth of bitcoin exchange-traded funds, said Craig Rudes, partner at Long Island Block Chain, a technical consulting firm for blockchain technology. 

Bitcoin ETFs, which first began trading in 2024, are financial products that allow investors to invest in crypto without directly owning it or needing to create separate digital asset accounts. 

How much longer are bitcoin prices expected to rise?

Rocco said it’s likely that prices will slow down after passage of the bills, as growing crypto prices generally come about as a result anticipated favorable market conditions.

“There’s been a lot of hype into this week,” he said.

Why are the bills important to the industry?

The Clarity Act, which aims to demystify the roles that the Securities and Exchange Commission and the Commodity Futures Trading Commission play in regulating digital currency markets, will have a major impact on crypto overall, Rocco said.

“These companies have been begging for this clarity,” he said.

The GENIUS Act has the potential to massively grow the use and investment in stablecoins," Rocco said. "Its passage could mean a stronger U.S. Treasury if a dollar-backed digital currency takes off." 

The Senate voted in favor of the bill in June.

Rudes said the Anti-CBDC Surveillance State Act prevents the Federal Reserve from issuing its own digital currency. As a result, he said, the bill protects investors from being mandated to use a government-run currency. 

“There shouldn’t be a government entity controlling and mandating the use of a digital asset," Rudes said. 

As far as the legislation's impact on Long Island investors goes, Rudes said the passage of stablecoin regulations will usher in an age of cheaper transactions. 

“Stablecoin passing into law is going to change how we do business over the next year to two years,” he said. “No longer will we paying MasterCard and Visa these percentages on transactions.”

What do critics of the bills say?

Hays with Americans for Financial Reform said the bills fail to protect consumers.

"They are passed as bills that provide consumer protection but what they do is create industry friendly regulatory carveouts," Hays said.

Under the proposed Clarity Act, Hays said crypto would be treated like commodities rather than securities, facing far less scrutiny and regulation. 

At the same time, he said, the GENIUS Act, in creating a framework for dollar-backed stablecoins, doesn't have the teeth to require things like insurance on deposits like a traditional bank.

“Instead of bank-like [regulations] they are bank-lite in that they give stablecoin issuers some of the same privileges of banks … but without the same obligations," Hays said. 

With The Associated Press