Washington's "Encryption Week" has begun, with three key bills aiding Wall Street and Bitcoin in ushering in a new era.

The Real Reason Behind Bitcoin's New High: The U.S. Congress Launches the Legislative Fast Track for "Encryption Week"

Matt Hougan, Chief Investment Officer of Bitwise, stated on July 14 that last week, Bitcoin reached a new all-time high, which is not only due to the continuous influx of institutional and corporate funds, but also an important factor that has been overlooked: the official announcement of "encryption week" in the United States, along with the promotion of three significant bills:

Three Key Bills:

1. GENIUS Act: Provides a clear regulatory framework for stablecoins
2. CLARITY Act: Establish a comprehensive regulatory framework for encryption assets.
3. Anti-CBDC Bill: Prohibits the launch of central bank digital currency (CBDC) in the United States.

Among them, the GENIUS Act has been passed by the Senate, and if the House of Representatives votes smoothly, it will become the first major encryption regulation in American history.

Why is encryption legislation so important?

1. Growth Potential: Institutions and Traditional Finance Will Fully Embrace Encryption

Once the regulations are in place, Wall Street will have legal support to enter the encryption field on a large scale. For example: JPMorgan, Bank of New York Mellon, Nasdaq and other financial giants will be able to publicly develop blockchain products. This will attract billions of dollars in investment and will also promote the trillions of dollars of traditional assets moving on-chain.

2. Reduce systemic risk: Historical collapses may not repeat.

The encryption industry has experienced several major crash events:

• FTX, Luna, Three Arrows Capital, Celsius, Mt. Gox, etc.

Most of these explosions stem from a lack of regulation. Clear legislation can:

• Eliminate the rampant presence of FTX-style offshore exchanges.
• Allows large U.S. banks to legally custody encryption assets, enhancing security.
• Prevent the rampant spread of "Ponzi stablecoins" like Luna

Although regulations cannot completely eliminate scandals (such as Madoff in traditional finance or Credit Suisse), they can greatly reduce risks.

Regulatory measures in place may end the history of Bitcoin's 70% level crashes

Although Bitcoin has been the highest returning asset over the past 15 years, it has experienced 7 declines of over 70%, which has deterred many institutional investors. With the advancement of legislation, this risk of significant pullbacks is expected to decline substantially.

Legislation cannot eliminate market volatility, but it will prevent the "systemic panic" caused by regulatory gaps. If the new regulations come into effect, we may never see Bitcoin plummet again.

No need to worry that changes in political parties will overturn encryption policies

A common question is: Is it possible for the next government to overturn these achievements?

The answer is negative. In fact, cryptocurrency is one of the few bipartisan consensus topics in the U.S. Congress: The GENIUS Act passed in the Senate with a vote of 68 to 30, with 18 Democratic members supporting it.

Why do both parties support it? Because:

• Young voters' strong support for encryption;
• The financial industry (the main supporters of the Democratic Party in traditional contexts) is actively embracing encryption.

When Blackstone, Morgan Stanley, Citibank, and others actively participate in encryption, it will be more difficult for politicians to oppose this trend.

Wall Street Fully Enters the Game, Encryption Assets Move Towards Mainstream

According to data provided by Bitwise, as of June 30, 2025, almost all major financial institutions in the United States are engaged in the following encryption-related businesses:

• Encryption spot, futures, and derivatives trading
• Custody Service
• Encryption asset allocation and asset management products

This trend indicates: you can't put the "encryption genie back in the bottle". If these bills are ultimately passed during "Crypto Week", the United States will enter a new era of crypto assets.

Risk Warning and Investment Disclaimer

• The prices of encryption assets are highly volatile, influenced by supply and demand, and are not backed by central banks or governments.
• Cryptocurrency exchanges lack the same regulatory protections as stock or futures markets.
• Investors need to have relevant knowledge and risk awareness to avoid significant losses due to lack of experience.
• This article is for market observation and industry trend analysis only and does not constitute investment advice. Please make independent decisions based on your own circumstances.