What consequences will the week of cryptocurrencies have?

History has a curious way of repeating itself. In the 90s, men in a suit who barely knew how to send an email decided the future Internet. This week, the script is similar, although this time cryptocurrencies are the protagonists.

That is because Capitol legislators are ready to approve or reject the laws that will establish the regulatory framework for the digital asset industry that grows in the country.

In the so-called cryptocurrency week, three bills with global implications, promoted by Republican legislators, reach the United States Senate (Clarity, Genius and Anti-CBDC). Your declared objective is end the regulatory anarchy that has stopped the sector for years.

The main focus falls on the proposal of Clarity Law, which seeks to establish a clear border between which digital assets are values under the jurisdiction of the Bag and Securities Commission (SEC) and raw materials under the Commerce Commission of Basic Products Futures (CFTC). If approved, it could be a turning point, giving the large funds and institutional investors the legal certainty they need to launch into the cryptocurrency market.

In addition, the Genius law initiative seeks to regulate the Stablecoins market, valued at approximately 240 billion dollars, creating a clearer frame for bankscompanies and other entities offer these digital assets.

The third regulation under discussion is the proposal of anti-CBDC law, which is a kind of shield against government overreach. This is because it guarantees that no Central Bank digital currency (CBDC) can be launched in US territory.

In that sense, and due to the importance of the cryptocurrency week, it is definitive that the event will have consequences, but everything depends on what happens. Therefore, we will evaluate it according to the two possible scenarios:

Optimistic scenario

• If Congress approves favorable laws, the catalyst effect would be immediate. With this, pension funds and institutional giants would jump the barrier to the pitch, injecting mass capital and consolidating the legitimacy of ETFs.

• Stablecoins could be popular, even more, encouraging confidence in these types of assets and competition in the market. There will no longer be a duopoly due to USDC and USDT market domain. “We are likely to see an avalanche of new stablcoins entering the market from the beginning,” said Nic Puckrin, cryptocurrency analyst, investor and founder of The Coin Bureau.

• With a clear frame, years of regulatory ambiguity will be eliminated. And, therefore, investors can use their cryptocurrencies with greater freedom, without fear of the sudden restrictive measures of the SEC, as in the past.

• By prohibiting the Federal Reserve from creating a CBDC, Congress will block a key tool for financial surveillance and capital control.

Pessimistic scenario

• If the laws stagnate or approve with excessive restrictions, the speculative bubble could explode, leading to a painful correction that exposes the fragility of the current rally.

• Uncertainty will reign and the ambiguity that has remained for years will continue.

However, not everything depends on the approval of the proposals of law to establish a regulatory framework for cryptocurrencies in the United States. This is because the adoption of Bitcoin, Stablecoins and other cryptocurrencies is gaining ground. And beyond political drama, diversification is also growing.

The market is already responding

Diversification, as Marcos Sampaio, CEO of the Brazilian Investment Company hashdex pointed out, “the future is not just Bitcoin. Diversification in Ethereum, Solana and Tokenized Assets will be key to reducing risks ».

And the market is already responding. Cryptocurrency ETFs manage more than 150 billion dollars, and institutional investors seek exposure to a broader range of digital assets, he said.

For him, investing in digital assets has become a sophisticated exercise of building a diversified portfolio, similar to how it is invested in the stock market, choosing companies from different sectors (technology, health, energy).

As you can see, the future of growth and stability of the digital asset ecosystem will not depend on a single king (Bitcoin), but on An entire asset ecosystem with different functions and potential.

That is why Sampaio gives it importance that once and for all a regulatory framework for the sector is established. In the economic and strategic context that gives meaning and urgency to the political debates of the “cryptocurrency week”, the Hashdex CEO suggests that the policy is trying to build the bridge so that intelligent capital, which already knows how it wants to invest (diversified), can cross it safely.

In any case, the success of the cryptocurrency week will not be measured only by what happens in the Capitol, but because of its impact on real life. If the laws advance, we could be facing a transformative future.

In this future, Banks around the world will offer cryptocurrency custodythe companies will tokenize assets such as shares or real estate and we will have a less volatile and more attractive market for traditional investors. And all that will happen because the rest of the countries followed the steps that the United States could give this week.

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Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.