Regulators Ignite $4 Trillion Crypto Surge with Historic Legislative Push

The global cryptocurrency market has experienced a significant surge, with total market capitalization reaching $4 trillion for the first time. This development is attributed to a combination of rising token prices and regulatory progress in the United States. The market’s recent momentum was further fueled by the U.S. House of Representatives passing three key legislative bills on July 17, 2025, including the GENIUS Act, which is expected to be signed into law by President Donald Trump. These legislative developments have been viewed as a step toward clearer regulatory oversight, reducing uncertainty and encouraging broader market participation.

Among the leading cryptocurrencies, Ethereum (ETH) surged past $3,600 per coin, hitting its highest level since January 2025. XRP, Solana (SOL), and Cardano (ADA) also saw substantial gains, all rising more than 10% in a single trading session. The rally was accompanied by significant volatility, as Coinglass data indicated that nearly 160,000 traders were liquidated within 24 hours, with losses totaling $587 million.

The regulatory landscape for cryptocurrencies has continued to evolve globally. In the U.S., President Trump announced plans for a national cryptocurrency summit in March 2025, signaling strong government support for the industry. Additionally, the Trump administration has taken steps to integrate major tokens such as XRP, SOL, and ADA into the U.S. cryptocurrency reserve. In Europe, the European Parliament finalized anti-money laundering rules for the sector in June 2022, marking a broader trend of increased scrutiny and structured regulation across major economies.

Meanwhile, institutional adoption of cryptocurrencies has continued to expand. Ferrari announced plans to accept cryptocurrency payments in the U.S. in October 2023, with potential expansion to Europe based on client demand. In early 2025, New York Mellon, one of the largest U.S. banks, began offering cryptocurrency services, signaling a shift in traditional finance toward digital assets. These developments reflect growing confidence in the asset class among both institutional and individual investors.

Despite this optimism, challenges persist. The market experienced a sharp correction in early April 2025, with Bitcoin falling below $75,000 per coin and other major tokens suffering even steeper declines. These swings highlight the inherent volatility of the market and the need for continued regulatory clarity and risk management. Analysts have noted that macroeconomic factors and evolving policy frameworks will likely influence market dynamics in the coming months.

The global adoption of digital currencies also continues to grow, with nations such as Russia and the Dominican Republic exploring or implementing state-backed digital currencies. Russia, for example, began allowing the use of cryptocurrencies in international trade and legalizing Bitcoin mining in late 2024. These moves reflect a broader trend of countries exploring digital alternatives to traditional financial systems.