Original Title: It's 'Crypto Week' in Washington

Original translation: Luffy, Foresight News

Wondering why Bitcoin hit an all-time high last week?

There are many reasons, including the ongoing demand from institutional investors and corporate finance departments. But one reason has not been adequately reported: this week is 'Crypto Week' in Washington, and in the coming days, you will see a lot of news supporting cryptocurrencies.

This is not something I made up. On July 3, the U.S. House of Representatives released a press release that received little coverage but is significant, officially declaring the week of July 14 as 'Crypto Week' and promising to advance three key crypto bills:

(GENIUS Act): A clear regulatory framework for stablecoins

(CLARITY Act): A general framework for regulating crypto assets

Anti-CBDC Surveillance State Act: A bill prohibiting the creation of a central bank digital currency in the U.S.

(GENIUS Act) has passed the Senate, so if it successfully passes the House, it will be submitted to the President for signing, potentially becoming the first major crypto bill in U.S. history.

(CLARITY Act) and (Anti-CBDC Act) still need Senate approval, but the passage of either bill in the House would be a significant milestone.

Why this is so important for cryptocurrencies

I firmly believe that once the U.S. supports cryptocurrency legislation, it will significantly boost the growth of the crypto industry and reduce risks.

The logic for growth is evident and has been widely discussed. Clear cryptocurrency legislation will better incentivize large financial institutions to invest in the crypto space, bringing billions of dollars into crypto assets and guiding trillions of dollars in traditional assets onto blockchain paths. If you've ever wondered what would happen to cryptocurrencies if JPMorgan, BNY Mellon, and Nasdaq could freely operate in the crypto space, you are about to find out.

But I think the more significant development of this legislation is its impact on risk and how it will change the way crypto assets are traded in the future.

One of the biggest obstacles facing cryptocurrencies is their history of constant crashes: FTX, Luna, Three Arrows Capital, Genesis, Celsius, QuadrigaCX, BitConnect, Mt. Gox.

Every failure has had a tremendous impact on the cryptocurrency industry and has diminished investor confidence. The occurrence of each failure has largely been due to the lack of clear regulation for cryptocurrencies.

If clear regulations allow for safer exchanges to operate domestically in the U.S., then offshore exchanges like FTX will never thrive, as they lack internal controls and have rough audits.

If large banks can custody crypto assets, investors will not shy away from cryptocurrencies due to custody issues.

If we had a bill similar to the (GENIUS Act), then Ponzi stablecoins like Luna could never exist.

Of course, examples from traditional finance prove that clear rules cannot prevent all scandals: the Bernie Madoff fraud case and a series of violations by Credit Suisse were not stopped by rules. But rules can indeed play a significant role.

One challenge that deters investors is that we often witness dramatic declines in Bitcoin and other crypto assets. Bitcoin has been the best-performing asset globally over the past 15 years, but it has also experienced seven declines of over 70%.

For professional investors, it's difficult to buy an asset that could drop 70% due to an unexpected scandal occurring on an unregulated offshore platform. As Washington weighs these cryptocurrency bills, I believe the likelihood of such scandals will sharply decrease.

Strong crypto legislation will not eliminate market volatility, but I dare say that if the bills pass, cryptocurrencies may never again experience a drop of over 70%.

Why I'm not worried about the future of crypto policy

One question people always ask about crypto legislation is: Aren't you worried that the next government might reverse these achievements?

My answer is: Not worried.

Contrary to media reports, cryptocurrencies are one of the few policy issues that have bipartisan support. The (GENIUS Act) passed the U.S. Senate with a vote of 68 to 30, with 18 Democratic senators voting in favor. This is one of the most bipartisan consensus bills in the 2025 congressional session.

There are many reasons for bipartisan support, including the widespread popularity of cryptocurrencies among young voters. But the most important reason may be the support from the U.S. financial industry—traditionally a major funding source for the Democrats, who are eager to seize the growth opportunities in the crypto space.

This economic motivation leads me to believe that Washington's support for cryptocurrencies has long-term sustainability. As more investors and businesses come on board, it will become increasingly difficult for politicians to oppose cryptocurrencies.

Think about it: today, almost all major financial institutions in the U.S. are involved in cryptocurrencies to some extent. If BlackRock, JPMorgan, and Morgan Stanley, along with thousands of American companies and millions of Americans, have made substantial investments in cryptocurrencies, it will be challenging for politicians to change direction.

Institutional adoption of cryptocurrencies

In other words: once the genie is out of the bottle, it can't be put back in. If these bills pass Congress during 'Crypto Week' and are ultimately signed into law, we will enter a new era.

Cryptocurrencies are moving mainstream, risks are decreasing, and Wall Street is making a big entrance.

No wonder Bitcoin hit an all-time high.