Bitcoin tops US$120,000 milestone as US Congress kicks off ‘Crypto Week’

The news: Bitcoin surged past USD120,000 as US lawmakers prepared landmark crypto legislation during “Crypto Week,” and regulators cleared the way for banks to enter custody services.

The context: The US House of Representatives will be voting on three key bills this week, which industry supporters have dubbed “Crypto Week”. The GENIUS Act, which would require stablecoins to be backed by liquid reserves; the CLARITY Act, which would set broader market structure rules for crypto, and the Anti-CBDC Surveillance State Act, which would ban the Fed from issuing a digital currency.

The GENIUS Act has already passed the Senate.

Meanwhile, US regulators on Monday issued a joint statement outlining risk-management considerations for banks providing crypto-asset safekeeping services. The Federal Reserve, FDIC and OCC reminded banks that such activities must be conducted in a safe and sound manner and in compliance with applicable laws, while clarifying that the statement sets no new supervisory expectations.

Earlier this year, regulators withdrew previous guidance on risks tied to the crypto sector and in April, the Fed rescinded a 2022 directive requiring banks to provide advance notice of crypto activities, saying those activities will instead be monitored through the normal supervisory process.