The recent surge in the value of crypto, driven by the performance of the altcoins Ethereum (ETH) and XRP have set a new benchmark for the crypto world. ETH surged by 8% to $3,600 in the past 24 hours, marking a 40% increase in just two weeks, and XRP skyrocketed by 20%, hitting an all-time high above $3.64.
The surge has now placed cryptocurrencies right below Nvidia (NVDA), the largest publicly listed company globally, currently valued at $4.2 trillion for the first time.
Investors are now doubling down with growing mainstream adoption, pushing them to take bigger risks and influencing the central government in shaping better regulations to change the nature of business for the DeFi market.
U.S. Approves three landmark Crypto Bills
Leading the way for new crypto bills, the U.S. House’s approval of three landmark bills marks a turning point for digital asset regulation, providing a positive outlook for the industry, with analysts predicting sustained gains to come as regulatory clarity and institutional support grow.
Stablecoins & policy moves
Three crypto bills have been introduced to boost the legitimacy of the cryptocurrency industry. The Genius Act is focused on regulating payment stablecoins, which has passed the bipartisan support and is now awaiting Trump’s decision.
The Clarity Act is more expansive and faces a longer road to enactment, framing a regulatory framework for crypto assets. With this, they are intending to shift the power away from the Securities and Exchange Commission to police digital currency, according to the New York Times.
The anti-CBDC
The third bill is intended to prohibit the Federal Reserve from issuing a new digital currency. What is known as the ‘central bank digital currency’ (CBDC) is a government-issued form of digital cash. It has also been sent to the Senate. The industry investors have long objected to the creation of a CBDC, as it would raise privacy issues for consumers.
The approval of these bills is a significant milestone for the crypto industry, as it marks a shift towards greater regulatory clarity and acceptance.
Growth of DeFi
Globally, payment systems are undergoing a revolution, and with a $4 trillion market cap, crypto can provide easier cross-border transactions, growth of decentralized finance and web3 applications, and new investment opportunities for the NFTs and metaverse projects.
The market is now in full swing due to the increased adoption and integration of cryptocurrencies into mainstream financial systems, bringing more businesses and individuals to recognize the potential of digital assets. The demand for cryptocurrencies continues to rise, driving up their prices.
