2025: Bitcoin exhibits subdued growth due to Trump's inconsistent stance on cryptocurrency regulations
In a significant turn of events, the US House of Representatives has advanced three controversial cryptocurrency bills after overcoming opposition from conservative Republicans. The GENIUS Act, which establishes a regulatory framework for the stablecoin market, has been signed into law by President Trump, marking a historic development for cryptocurrency regulation in the U.S.
The GENIUS Act, aimed at providing a clear regulatory framework for the $250 billion stablecoin market, has faced initial resistance from a dozen conservative Republicans. However, a compromise was reached involving a ban on central bank digital currency (CBDC) being attached to a must-pass defense spending bill, which satisfied the GOP holdouts. The House passed the GENIUS Act with bipartisan support, and President Trump signed it into law on July 18, 2025.
The CLARITY Act, a broader crypto market structure bill covering digital commodities beyond stablecoins, and the Anti-CBDC Surveillance State Act, which aims to ban the Federal Reserve from issuing any retail CBDC directly to Americans, are also being considered by the House. These bills, if passed, could provide a clearer regulatory framework for the cryptocurrency markets and potentially boost investor confidence.
However, the future of cryptocurrency prices could be affected significantly by these legislative actions. The regulatory clarity from the GENIUS Act and the CLARITY Act may support stablecoin markets and broader crypto asset stability. However, some Democrats have expressed concerns that these laws might harm consumers, investors, and even national security, potentially planting seeds for future financial crises. The prevention of a CBDC could slow government-issued digital dollar development, maintaining the private crypto sector's current landscape but also intensifying debates about digital monetary innovation.
The rally in bitcoin prices since the last quarter of 2024 has been led by crypto exchange-traded funds (ETFs), with the iShares Bitcoin Trust, among the largest bitcoin ETFs, receiving inflows of $34.3 billion in the last one year. However, these flows turned negative in February 2025, indicating investor nervousness despite high bitcoin prices.
As of mid-July 2025, Bitcoin's market capitalization stands at $2.36 trillion, making it the most valuable cryptocurrency. Ethereum, XRP, and Tether are the next top cryptocurrencies in terms of market capitalization and trading volume.
The crypto industry, a main source of funds for the Trump Presidential campaign, is disappointed by the struggle faced by the bills. The outcome for these bills will determine the future price movement for crypto assets. The Trump administration's announced crypto week, expected to bring significant regulations, has resulted in further chaos in the market.
In conclusion, the advancement of these bills represents a major step toward formal federal crypto regulation that could stabilize markets and foster broader adoption. However, the mixed reactions suggest that cryptocurrency prices may experience volatility as stakeholders digest the implications.
- The GENIUS Act, a regulatory framework for the stablecoin market with a market value of $250 billion, has been signed into law by President Trump, aligning with the broader crypto market structure bill (CLARITY Act) and the Anti-CBDC Surveillance State Act currently under House consideration.
- The passage of these bills could boost investor confidence in the cryptocurrency markets, potentially benefiting a range of digital commodities like stablecoins, while the prevention of a central bank digital currency (CBDC) could maintain the private crypto sector's current landscape.
- Despite the historic development in cryptocurrency regulation, some Democrats have expressed concerns over consumer protection, investor rights, and even national security, hinting at possible future financial crises.
- The crypto industry, a significant funding source for the Trump Presidential campaign, is disappointed with the process, and the outcome for these bills could influence the future price movement of cryptocurrency assets.
- The advancement of federal crypto regulation is anticipated to stabilize markets, foster broader adoption, and bring significant changes to the financial technology (Fintech) and finance sectors, with impacts on economic growth, trade, and global business practices.
