US $4.5T Bill Approves Stablecoin Rules, Bitcoin Rally
Congress has passed a $4.5 trillion fiscal bill, awaiting the president’s signature. The legislation extends major tax cuts, boosts defense and energy funding, and cuts Medicaid and nutrition programs, adding $3.4 trillion to the deficit. It also enacts a federal stablecoin regulation framework—the GENIUS Act—mandating 1:1 reserve backing, public audits, and joint federal–state oversight. Markets reacted strongly: Bitcoin jumped past $109,000, Ethereum rose 6%, and XRP climbed 3.2% to $2.26. Traders view stablecoin regulation clarity as reducing systemic risk, while inflation concerns and massive deficit spending drive Bitcoin demand as an inflation hedge. However, the lack of crypto tax relief and potential interest-rate hikes could limit upsides. Crypto traders should monitor upcoming digital‐asset policies and inflation trends to gauge market direction.
Bullish
The bill’s introduction of clear stablecoin regulation reduces systemic risk, prompting a strong short-term rally in Bitcoin, Ethereum and XRP. Massive deficit spending and renewed inflation fears reinforce Bitcoin’s appeal as an inflation hedge. While absent crypto tax relief and potential rate hikes pose headwinds, the overall stimulus and regulatory clarity are likely to sustain bullish trader sentiment over both the short and medium term.