nickthomas2@benzinga.com
4 min read
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Cryptocurrency markets initially surged after Bitcoin hit $110,600 on Monday, but have since pulled back following Wednesday’s inflation data, with Bitcoin down 2.5% as federal lawmakers make unprecedented progress on digital asset regulation.
Digital assets showed mixed action this week after Bitcoin reached $110,600 on Monday before Wednesday’s consumer price data triggered a pullback. Bitcoin has since given back some gains, declining 2.5% from its recent peak as investors digest the inflation numbers.
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May's inflation reading, while cooler than some expectations, led to profit-taking in risk assets. President Donald Trump‘s tariffs have not yet shown significant impact on inflation metrics, though markets remain sensitive to any policy developments.
Federal lawmakers are making significant headway on cryptocurrency regulation, with two major bills gaining bipartisan momentum.
The House Financial Services Committee voted 32-19 to advance the Clarity Act, while the Agriculture Committee passed it 47-6. The legislation aims to establish comprehensive oversight for crypto markets and is now heading to the full House for debate.
Meanwhile, the Senate’s GENIUS Act on stablecoin regulation is moving toward a final floor vote. Over 100 amendments have been filed by both Democrats and Republicans, including proposals to prohibit government officials and their families from profiting from stablecoin ventures while in office, and restrictions on large online platforms issuing stablecoins.
Industry observers believe stablecoin legislation — viewed as the “low-hanging fruit” for U.S. crypto regulation — could pass by July or shortly after the congressional recess.
Traditional corporations are rapidly embracing stablecoins, with the “education gap” closing significantly over the past eight to nine months, according to industry executives. Government focus on stablecoin regulation has helped validate their business value.
PayPal (NASDAQ:PYPL) announced it’s bringing its PYUSD stablecoin to the Stellar blockchain, focusing on cross-border remittances and payment financing. The partnership leverages Stellar’s established expertise in international payments and MoneyGram’s on-ramp and off-ramp capabilities for the network.
