Bitcoin Sets New All-Time High

Topline

Bitcoin reached an all-time high Wednesday, surpassing a record set shortly after President Donald Trump’s inauguration, after the Senate advanced further regulations on some cryptocurrencies earlier this week, sparking a broader crypto market surge and regulatory optimism.

The Senate advanced regulations for stablecoins earlier this week, following support from the … More broader crypto industry.

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Key Facts

The price of bitcoin rose by more than 4% to around $109,700 Wednesday afternoon, surpassing a previous all-time high of $109,228 on Jan. 20.

Other cryptocurrencies have surged over the last 24 hours, including ethereum (up 3.2%), XRP (2.4%), Solana (3.3%) and the meme token dogecoin (2.7%).

Bitcoin, which opened May at just under $96,500, and other cryptocurrencies have rallied in recent weeks in the lead-up to the Senate advancing the GENIUS Act on Monday, despite every Democrat voting to block the bill two weeks earlier.

The GENIUS Act, approved in a 66-32 vote with 16 Democrats and two Republicans voting against it, would introduce the first regulatory framework for stablecoins, or cryptocurrencies tied to currencies like the U.S. dollar, including new consumer protection safeguards and limits on companies issuing stablecoins.

Big Number

About $111 billion. That’s how much has been added to the global crypto market’s aggregate market value in the last 24 hours, rising from $3.43 trillion to $3.54 trillion, according to CoinGecko.

What Is The Genius Act?

The GENIUS Act, introduced by Sen. Bill Hagerty, R-Tenn., in February, sets new limits for stablecoin issuers. Some of the new regulations require companies issuing stablecoins to hold a reserve of assets to back the cryptocurrency, a provision that some legislators reportedly argued would protect consumers and prevent the stablecoin from crashing amid a broader selloff. The bill also requires stablecoin issuers to prioritize coin holders for repayment or reimbursement should the companies go bankrupt.

What Were Democrats’ Concerns With The Genius Act?

The latest version of the bill requires issuers to comply with anti-money laundering regulations and anti-terrorism sanctions, after Democrats expressed concerns over Trump’s dealings in the cryptocurrency industry. In March, the Trump-backed crypto firm World Liberty Financial released the stablecoin USD1, which the Abu Dhabi government reportedly then used to make a $2 billion investment in the crypto exchange Binance. Earlier this month, Rep. Gerald Connolly, D-Va., and other House Democrats called for the Treasury Department to release documents in a larger probe into WLF and Trump-branded meme coins, alleging possible bribery, corruption and conflicts of interest. Democrats also alleged “bad actors” could purchase Trump’s $TRUMP meme coin and “curry favor with Trump” without public disclosure, after the Securities and Exchange Commission exempted the tokens from most regulations in February. Sen. Elizabeth Warren, D-Mass., argued the GENIUS Act’s original text would “supercharge Donald Trump’s corruption,” according to CNN. Hagerty wrote the bill would “[enshrine]

American leadership in the digital asset space and [protect] the U.S. dollar for centuries to come.”

Key Background

Trump embraced cryptocurrency in the lead-up to the presidential election last year, and his campaign was backed by several billionaires with ties to the industry. He claimed he wanted the U.S. to become the “crypto capital of the planet” and has said he would use his executive powers to reduce regulatory burdens facing crypto firms. Trump’s election victory sent bitcoin to new record highs, including surpassing $100,000 for the first time, within a month of Election Day. Bitcoin’s growth slowed in the months after Trump’s inauguration, before Trump announced in March the U.S. would establish a digital asset stockpile similar to its gold reserve.