Bitcoin was rising slightly early on Monday but other cryptocurrencies were recording stronger gains. Crypto-related legislation looks to be fueling a rotation into other digital currencies which could be more immediate beneficiaries of the new laws.
Bitcoin’s price was up 1% the past 24 hours at around $119,194. The world’s largest cryptocurrency hit a record high of $123,166 last week amid excitement over “Crypto Week” as multiple pieces of crypto-related legislation made their way through Congress.
Several large altcoins were rising. Ether gained 3.5%, XRP climbed 3.1%. Solana was rising 6.3%, while memecoin Dogecoin surged 8.7%.
President Donald Trump signed the Genius Act into law on Friday, establishing a framework for federal regulation of so-called stablecoins, whose prices are pegged to a real currency like the dollar. The bill requires issuers to maintain one to one reserves in U.S. dollars or Treasuries and bans interest-bearing stablecoins.
“The GENIUS Act’s ban on yield-bearing stablecoins is driving institutional interest into Ethereum, which largely provides the network for stablecoins,” wrote Deutsche Bank analyst Marion Laboure in a research note on Monday.
However, arguably the more important piece of legislation is the Clarity Act, which addresses the question of whether cryptos are commodities or securities, and what regulator would oversee them. While it was approved by the House on Thursday, it still needs to pass the Senate.
Whether Bitcoin can achieve further gains is likely to depend on the apparent progress of the Clarity Act through the Senate before the August recess. However, it could also receive a boost Tuesday, when a president’s working group makes policy recommendations that could include a proposal for a strategic reserve of Bitcoin.
