Top Line
Ethereum hit a six-month peak on Friday, capping a positive week for cryptocurrencies as Republicans wrapped up what they termed “crypto week,” following the approval of new custody legislation.
Important facts
On Friday, Ethereum surged by 7.6% to reach $3,675.60, its highest value since January 7, marking a more than 19% increase over the past week.
Other cryptocurrencies also saw gains during the week, as House Republicans voted on new legislation aimed at boosting innovations in US Stablecoins. Notable increases include XRP at 22.8%, Binance’s BNB at 5.8%, Solana at 8.5%, and others like Tron and Dogecoin.
Initially, Bitcoin experienced a strong showing during “Crypto Week,” reaching an all-time high just shy of $123,000 on Sunday. However, its value dipped below $118,000 by Friday.
Coinbase’s shares rose significantly during the broader crypto rally, climbing by 6% to exceed $444.
Important Quotes
This week, Wolfe Research Broker Read Harvey remarked that, “Cryptocurrency has been showing more momentum lately, especially with Ethereum, which is gaining some traction compared to Bitcoin.”
What laws were passed during “Crypto Week”
Earlier this month, the Republican-led House Committee on Financial Services declared the week starting July 14 as “Crypto Week,” promoting several pro-crypto legislative bills, including the Genius Act, which sets federal regulations for Stablecoin issuers, as well as the Clarity Act and the Anti-CBDC Act. After receiving unanimous support from Republicans, the Genius Act was signed into law, establishing guidelines for how Stablecoins should be backed and prioritizing repayment to coin holders in the event of company bankruptcies. The Clarity Act clarifies the division of regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission, while the Anti-CBDC Act prevents the Federal Reserve from issuing central bank digital currencies.
Big numbers
Roughly $150 billion was added to the global cryptocurrency market’s total value over the past week, increasing from about $3.78 trillion on July 13 to $3.93 trillion by Friday afternoon, according to Coingecko.
Chief critic
The proposed legislation faced criticism from some Republican holdouts who argued against the Genius Act, expressing that it failed to ban central bank digital currencies, an omission that the Anti-CBDC laws were meant to address. Additionally, several Democrats, including Rep. Gerald Connolly and Senator Elizabeth Warren, raised concerns, suggesting that the act lacked sufficient safeguards against fraud and corruption. Despite some Democrats supporting the bill, crypto analysts believe the Genius Act will enhance the reliability of Stablecoins for new investors, as these tokens are generally linked to stable assets like the US dollar.
