Bitcoin Nears Record High As Pro-Crypto Bills Hit U.S. Congress

HomeNews* Bitcoin‘s price has risen by about 50% since April, approaching its all-time high.

• Senator Cynthia Lummis introduced a bill to Congress aiming to modernize crypto tax policies.
• The bill proposes to exempt small crypto transactions under $300 from taxes and defer taxes on mined and staked assets until they are sold.
• U.S. lawmakers will focus on three new crypto-related bills as part of “crypto week” in July.
• Analysts expect new ETF flows and U.S. policy developments to support further growth in the bitcoin market. The value of bitcoin has climbed sharply in recent weeks, gaining around 50% since its low in April and reaching levels close to its record high. This surge comes as crypto continues to expand its influence in the financial sector and attracts attention from political figures and leading companies such as SpaceX and OpenAI.

• Advertisement - The total market capitalization of bitcoin now exceeds $2 trillion. Recent developments include the introduction of a new bill in Congress by Senator Cynthia Lummis. In a statement, Lummis described the legislation as “groundbreaking” and said it aims to set practical rules that reflect the modern use of digital assets (read statement).

The proposed bill would make crypto transactions under $300 tax-exempt. It also plans to defer taxes on income generated from crypto mining and staking until the assets are sold, instead of taxing them immediately. The bill would close the “wash rule” loophole, applying a 30-day rule to crypto like traditional stocks. Lummis said congressional estimates show the bill could generate $600 million through 2034. “We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” Lummis stated.

Senator Lummis had previously tried to include these reforms in President Donald Trump’s larger tax and spending bill, but it was not added before the measure advanced through the Senate. The House of Representatives has since passed President Trump’s bill, which expects to add $3 trillion of debt and increase the U.S. debt ceiling by $5 trillion.

In mid-July, Republican lawmakers in the House have declared “crypto week,” when they intend to discuss three major bills: the stablecoin Genius Act, the market structure Clarity Act, and the Anti-CBDC Surveillance State Act. The administration’s proactive stance toward bitcoin and crypto has been highlighted as a possible driver for increased activity in the market.

Geoff Kendrick, global head of digital assets research at Standard Chartered Bank, said in an email that, “We expect bitcoin to print new all-time highs in the second half of the year, buoyed by growing ETF and corporate treasury flows, as well as U.S. policy and regulatory developments.” Investors have directed more than $100 billion into bitcoin, mainly through spot bitcoin ETFs managed by leading firms like BlackRock, and through companies increasing their bitcoin holdings as treasury assets.

The coming month is expected to be significant for the digital asset market, with traders watching closely for both policy changes and market movements.

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