Global cryptocurrency market value surpasses $4 trillion for the first time. "Crypto Week" ignites market enthusiasm.

After the milestone cryptocurrency bill passed in the United States, investors are expecting billions of dollars to flow into the cryptocurrency market, pushing the total market value of cryptocurrencies above $4 trillion for the first time on Friday. Bitcoin hit a historical high of over $123,000 this week, while other tokens such as Ethereum and Solana also saw significant gains. According to digital asset data provider CoinGecko, the total market value of cryptocurrencies had surpassed $4 trillion by Friday. The cryptocurrency industry exceeding $4 trillion in market value marks a significant rebound since the major downturn in the crypto market in 2022. At that time, the collapse of the FTX exchange pulled the market value down to around $800 billion. Many investors withdrew from the market when the price of Bitcoin dropped to around $16,000, citing the high risk of crypto assets. Industry insiders point out that the recent trend in the crypto market coincides with a series of legislative measures being enacted in the United States, marking a major step towards mainstream adoption of cryptocurrencies. Institutional funds that have been waiting on the sidelines are now expected to enter the market as policy clarity emerges. On Thursday local time, the U.S. House of Representatives overwhelmingly passed three major cryptocurrency bills. Among them, the "GENIUS Act" related to stablecoin regulation received 308 votes in support, more than 2.5 times the 122 opposing votes, with over 100 Democratic lawmakers crossing party lines to support it. The House also passed independent legislation on digital asset market structure and the prohibition of issuing central bank digital currencies (CBDCs). The related bills still need to be voted on by the Senate. Currently, the cryptocurrency industry has received strong support from U.S. President Trump. Trump has vowed to make the U.S. the "global capital of crypto." He has initiated or supported multiple token projects and appointed officials who support cryptocurrencies. David Sacks, the AI and cryptocurrency director appointed by Trump, commented on X platform: "This is a major victory for cryptocurrency in the House of Representatives." The market expects that stablecoin legislation will pave the way for Wall Street banks, asset management institutions, and other companies to invest in digital assets or create their own tokens. Executives from banks such as Bank of America, Citigroup, and JPMorgan have stated that they will create their own stablecoins once the "GENIUS Act" becomes law. Trump is also preparing to sign an executive order allowing the $9 trillion U.S. retirement market to invest in cryptocurrency assets and other alternative investments. However, critics warn that a closer integration of cryptocurrency with the traditional financial system could pose significant risks in the event of another market collapse. Democratic Senator Elizabeth Warren has stated that the "GENIUS Act" lacks necessary safeguards and may not prevent stablecoins from causing a systemic financial crisis. She also pointed out the risk of private companies issuing stablecoins concentrating too much economic power in the hands of a few. This article was reprinted from "Wall Street See News," author: He Hao; GMTEight editor: Xu Wenqiang.