Stocks aren’t the only asset class that’s recently hit new all-time highs… As I write this, Bitcoin is trading at over $122,000! This all-time high coincides with what has been dubbed Crypto Week. (starting 14 July).
This week, arguably the most consequential cryptocurrency legislation in history is set to pass in the US.
After passing the Senate last month, the GENIUS Act is set to become the first major regulation of crypto ever adopted by Congress. This isn’t just another regulatory framework — it’s America’s bid to weaponise the dollar through digital means.
I recently spoke about the GENIUS Act in MoneyMorning. But as a recap: The Act opens the door for cryptocurrencies — through stablecoins — into the very heart of the financial system. Remember, stablecoins are cryptos whose value is pegged to another asset. Think gold, treasuries, fiat currencies.
The GENIUS Act ensures these pegs are legitimate… and ultimately linked to the US financial system
It requires stable-coin issuers to hold full reserves backed by the Federal Reserve, as well as comply with anti-money laundering (AML) laws to ensure consumer protection and market stability.
Treasury Secretary Scott Bessent calls it a ‘win-win-win’ — and he’s right. The private sector gets clarity. The Treasury gets new buyers for its bonds. Consumers get protection.
And for the stablecoin market?
Well, it could rocket if the GENIUS Act passes!
In fact, Bernstein predicts the market could hit $4 trillion valuation in the next 10 years.
Standard Chartered forecasts a nearly tenfold rise to $2 trillion by the end of 2028.
While JPMorgan predicted a more conservative estimate of $500 billion by 2028.
Either way, The GENIUS Act envelops the next generation of finance within the US system. Most importantly, it turbocharges dollar dominance globally.
But that’s not all for Crypto Week
Two additional bills addressing digital asset regulations are up for debate…
The House of Representatives will also deliberate on two other key crypto bills.
Firstly, the CLARITY bill, also known as the market structure bill, aims to provide clear guidance for the broader cryptocurrency market – which includes cryptocurrencies, digital commodities, and decentralised finance (DeFi).
The bill also clarifies the regulatory jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over cryptocurrencies.
If passed, altcoins including “DEFI” cryptos such as Ethereum, Solana, Tron etc could witness a huge price surge.
The second bill up for deliberation is the Anti-CBDC Surveillance State Act. This bill aims to restrict the Federal Reserve (Fed) from developing, issuing, or using a Central Bank Digital Currency (CBDC) for monetary purposes.
Simply put – by reducing long-standing regulatory uncertainty, these crypto bills could pave the way for increased participation from institutional and traditional investors.
This crypto convergence creates multiple investment opportunities for investors
Like it or not, digital assets are going mainstream.
But it’s not just about owning Bitcoin, bitcoin-linked companies or altcoins here. Payment processors bridging traditional and crypto finance will thrive.
Companies helping businesses convert between stablecoins and local currencies will see huge growth. And don’t ignore the picks and shovels – the cybersecurity firms protecting our digital assets.
What’s undeniable is capital is pouring in, policy is aligning, and markets are rewarding the risk takers who can see the buildout of this new financial infrastructure. To stay in the loop as these opportunities evolve make sure you are subscribed to South African Investor.
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