Optimism sparked by President Donald Trump’s expected tax cut package signing on July 4 has extended to the “Cryptocurrency Week” set for July 14-18. The GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act are set to be discussed in the House of Representatives, offering promises of clear regulations, impediments against an unmonitored digital dollar, and innovation incentive packages. Fueled by these expectations, Bitcoin 
$64,336 surged briefly past $110,000, nearing its historic high. Investors anticipate a potential jump to $120,000 if these legislative measures are approved.
GENIUS Act and Strengthening the Dollar’s Status
The GENIUS Act, having passed the Senate, is up for a House vote on July 14. This proposal aims to integrate stablecoins—which are pegged 1:1 to the US dollar—into the US financial system by encouraging issuers to hold treasury bonds. The Trump administration believes this will boost demand for the dollar in the cryptocurrency market, thereby reinforcing its status as the reserve currency.
The general expectation is for quick approval of the act. Large issuers like Tether leaning towards US Treasury bonds indicate that the market is already pricing in this potential legislation. Proponents highlight the safety of stablecoins, while detractors claim a compromise on decentralization.
CLARITY and Anti-CBDC Acts in the Spotlight
The CLARITY Act, awaiting committee approval, aims to resolve the cryptocurrency classification dilemma of securities versus commodities. The legislation outlines a flexible framework for coin classification and consumer protection. Although Tom Massad, former CFTC Chairman, believes the bill’s language is open to interpretation, support from Republicans is evident.
The Anti-CBDC Surveillance State Act focuses on halting the Federal Reserve from issuing a central digital dollar. Despite limited progress in recent months, Trump’s stance against CBDCs maintains its symbolic importance within the party. Importantly, the act doesn’t restrict Americans from using foreign central bank digital currencies, thus its impact might remain political.
The simultaneous debate of these three bills during the Cryptocurrency Week will clarify the division in Washington. Approval of all legislative proposals could signal clear regulation and bolster expectations for a bull market propelled by dollar-backed stablecoins.
