Regulators Spark $110B Crypto Surge with Landmark U.S. Legislation

The global cryptocurrency market experienced a significant surge in value, adding approximately $110 billion in a 24-hour period, driven by legislative advancements in the United States and heightened investor optimism. On July 17, 2025, the U.S. House of Representatives passed three key cryptocurrency-related bills: the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act. The GENIUS Act and CLARITY Act are expected to be sent to the Senate for further review, while the GENIUS Act is anticipated to be signed into law by U.S. President Donald Trump. The passage of the legislation marked a pivotal moment for the crypto industry, signaling a shift toward clearer regulatory frameworks and a more institutionalized market environment.

The regulatory clarity provided by the U.S. Congress had an immediate and substantial impact on the cryptocurrency market. Ethereum (ETH) broke through the $3,600 mark, reaching a high not seen since early 2025. XRP, Solana (SOL), and Cardano (ADA) also recorded double-digit gains, with XRP and Dogecoin (DOGE) rising by over 10%. According to data from Coinglass, the 24-hour trading session saw nearly 160,000 traders being liquidated, with a total of $587 million in losses. Despite the volatility, the overall market cap of cryptocurrencies surpassed $4 trillion for the first time, demonstrating a broader confidence in the asset class.

This growth reflects a broader trend of institutional adoption and regulatory alignment. The U.S. government has shown increasing openness to integrating cryptocurrencies into the national financial system. In March 2025, President Trump announced plans to host the first-ever White House cryptocurrency summit. Moreover, the inclusion of XRP, Solana, and Cardano into the U.S. crypto reserve further underscored the government’s support for a diverse range of blockchain-based assets. These developments have been viewed as significant steps toward legitimizing cryptocurrencies as part of the global financial architecture.

The regulatory momentum in the U.S. also appears to be influencing global policy discussions. On March 10, 2025, Eurozone finance ministers convened to address how to respond to the U.S. government's evolving cryptocurrency strategy. This meeting highlighted growing concerns among European officials about the implications of U.S. policy shifts for the international monetary system. Meanwhile, in China, state-owned enterprises have taken a cautious approach, with Shanghai's State-owned Assets Supervision and Administration Commission holding a learning session on stablecoins and digital currencies. In Russia, the government has continued to normalize the use of cryptocurrencies, with companies now permitted to use Bitcoin and other digital assets for international trade.

The market’s recent rally is also being driven by the broader evolution of the blockchain ecosystem. Ethereum, for instance, has solidified its role as a foundational layer for decentralized finance (DeFi) and stablecoins. As of Q2 2025, Ethereum secured over $123 billion in stablecoins and $75 billion in DeFi assets. The platform’s throughput has expanded to more than 250 transactions per second, with continued improvements in scalability and energy efficiency following the “Merge” upgrade in 2022. These technical enhancements have positioned Ethereum as a critical infrastructure layer for the next generation of financial services and digital assets.

Despite the optimism, challenges remain. Regulatory uncertainty continues to exist in regions such as India and Pakistan, where governments have imposed high tax rates or outright bans on private cryptocurrency use. In contrast, jurisdictions like France have taken a more supportive stance, with Binance becoming the first major exchange to receive regulatory approval in the country. As the global regulatory landscape continues to evolve, the industry is likely to see increased fragmentation, with markets diverging in terms of adoption and policy direction.