Policy Tone Set! The US House of Representatives Passes Key Crypto Legislation, Will Institutional Funds Enter the Market?

Policy Background

For a long time, US crypto regulation has relied on crackdowns by law enforcement, resulting in unclear rules and market volatility. After years of lobbying and over $119 million in political investment, Congress passed three key bills on the eve of its recess, marking a shift in regulation from enforcement to legislation. Wall Street giants such as BlackRock CEO Larry Fink have expressed rare public optimism about Bitcoin, reflecting institutional confidence in policy clarity.

Contents of the bill and potential impact

• The CLARITY Act clarifies the classification of digital assets as securities/commodities and the division of responsibilities between the SEC and CFTC, filling regulatory gaps. Opportunities : It provides a compliant path to attract innovative capital. Risks : Broad regulations may leave loopholes, leading to financial risks.

• The GENIUS Stablecoin Act requires 100% reserve and transparent disclosure of stablecoins, laying the foundation for digital financial infrastructure. Opportunities : Significantly reduce the risk of flash crashes, with Walmart, Amazon, and other companies potentially launching corporate stablecoins. Risks : Tech giants' involvement could weaken government monetary control.

• Anti-CBDC legislation : Bans the Federal Reserve from issuing a digital dollar, safeguarding privacy and financial freedom. Opportunities : Expanding the space for private innovation, with commercial stablecoins and DeFi filling the gap left by central banks. Risks : Long-term potential lag in the global CBDC race.

Multiple reactions and market analysis

Supporters hailed this as a "setting moment," with former Senator Patrick McHenry arguing that its impact rivals the securities laws that laid the foundation for Wall Street in the last century. Opponents warned the bill could sow financial risks and questioned whether issuing its own stablecoins by tech giants would weaken government control. The vote showed that the stablecoin and market structure bills enjoyed bipartisan support, while the anti-CBDC bill was deeply divided and likely faces future resistance in the Senate.

Investment Analysis and Outlook

The legislation sends a positive signal, and regulatory certainty is expected to attract institutional funds that have been on the sidelines. The regulation of stablecoins will enhance the expansion of payment and DeFi scenarios, and traditional financial institutions may launch compliant products. While rejecting CBDCs may benefit private cryptocurrencies in the short term, it may also weaken the US's global digital currency competitiveness. JPMorgan Chase CEO Jamie Dimon has stated that the bank will enter the stablecoin business to avoid being left behind.

Globally, the US action will accelerate regulatory competition among major economies, reduce compliance risks in cross-border investment, and promote the diversification of funding sources. However, vigilance is warranted regarding risks such as legislative prospects, policy implementation, market overheating, and political uncertainty.

in conclusion

The new bill marks a milestone for the crypto industry, injecting long-awaited confidence into the market. While improved regulation presents opportunities, uncertainty remains regarding Senate negotiations and implementation details. As Ray Dalio noted, "market certainty is always relative." Investors should plan rationally, monitor the pace of policy changes, and avoid blindly chasing high prices.