From July 14 to 18, the virtual asset market showed an upward trend as the U.S. House of Representatives designated this week as 'Crypto Week' focusing on virtual asset-related legislation, culminating in the passage of related bills. Experts analyzed that the clarity in regulations regarding virtual assets drove the rise in asset prices.
As of 1:41 p.m. on the 14th, the price of Bitcoin recorded $121,031, up 2.72% from 24 hours earlier. This is a 10.82% increase compared to a week ago. This marks the first time that Bitcoin's price has surpassed $120,000. Subsequently, after a sell-off for profit taking, the price fell but rebounded to over $120,000 again on the 18th after the passage of three virtual asset bills in the House.
The virtual asset market is analyzed to have continued its upward trend in expectation of regulatory clarity and a stable macro environment. The main driver of the market's rise this week was the legislative package of three major virtual asset laws, including the 'Genius Bill' passed by the U.S. House. These bills were assessed as increasing the likelihood of virtual assets entering the regulatory framework by specifying the legal status and regulatory system for digital assets. Following the passage of the bills, expectations for institutionalization rapidly spread throughout the market, positively impacting the overall virtual asset market.
Hwang Hyo-jun, a researcher at Jangle, noted, "This week was a period that strongly stimulated investor sentiment with signals of institutionalization," and added, "Although tariffs and price pressures exist, the market appears to be more sensitive to securing regulatory clarity and policy certainty."
◇ U.S. House passes three major virtual asset bills
On the 17th (local time), the U.S. House held a plenary session and passed the 'Genius Bill,' a regulation for stablecoins, with 308 votes in favor and 122 votes against. This bill aims to provide a legal definition, issuance procedures, and disclosure requirements for stablecoins, seeking to integrate privately issued digital currencies into the regulatory framework and is regarded as the first federal law providing substantial regulatory clarity for the virtual asset industry.
On that day, the House also processed the Comprehensive Act (CLARITY Act), which includes a supervisory framework for virtual asset exchanges, brokers, and issuers, in order to establish a regulatory framework across the digital asset ecosystem. Additionally, the 'Anti-CBDC Bill,' which prohibits the issuance of Central Bank Digital Currency (CBDC) by the U.S. Federal Reserve, was processed. The CLARITY Act aims to clarify jurisdiction and responsibilities to mitigate conflicts between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while the Anti-CBDC Bill reflects concerns regarding the federal government's monetary surveillance measures.
Although there were political disagreements surrounding the processing of the bills, collaboration between conservative Republican lawmakers and the Trump camp, along with lobbying from key blockchain corporations, facilitated the consensus. Notably, major companies like Coinbase and Circle have adopted strategies to directly tackle the regulatory uncertainties from the Biden administration. The passage of these bills is expected to act as a catalyst, accelerating the institutionalization of the digital asset market in the U.S. and the influx of institutional funds.
◇ Korea's lagging stablecoin institutionalization
In contrast, it is expected that the National Assembly's proposal for the 'Digital Asset Innovation Act' being pursued by the Democratic Party of Korea will be delayed by at least 1 to 2 months.
This bill is characterized as a fundamental law aimed at fostering the industry, defining digital assets and stablecoins, expanding virtual asset businesses, and establishing a regulatory framework. While the 'Virtual Asset User Protection Act,' enacted in 2023, focused on investor protection, this innovation bill has attracted the industry's attention as a comprehensive legislation encompassing industrial promotion and integration into the regulatory framework.
However, since the briefing held last month, persistent detailed disagreements between financial authorities and the industry have delayed consultations, and the timeline for the proposal, which was scheduled for this month, is currently on hold. The Democratic Party has shown political will by undertaking legislative promotion as a party-level initiative involving all members of the policy committee, but the lack of practical consultation and internal dissent has hindered progress. Since Lee Jae-myung, the President, has expressed strong intentions to nurture the virtual asset industry since his candidacy, this delay has raised disappointment in the market.
Some in the industry are concerned that while the U.S. has recently passed the Genius Bill in the House, actively advancing the institutionalization of digital assets, Korea appears to be retreating. While the U.S. induces global capital inflow based on regulatory clarity and industrial trust, criticisms have arisen that Korea may lose competitiveness due to regulatory gaps and lack of policy prioritization.
☞ CrossAngle is
providing essential operational solutions based on on-chain data and building trust-based community services for companies and foundations adopting Web3. It operates the crypto data intelligence platform Jangle, and the Jangle research team is creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.