The last time we had this setup…
Ethereum’s token ran up 41%… Bitcoin nearly 18% in the same timeframe… and Solana 22%.
All in a span of 30 days.
And these were tokens with market caps in the hundreds of billions of dollars.
Smaller-cap tokens ran even harder.
The reason for such a strong push across the board was that the current U.S. administration was not just talking the talk… it was walking the walk.
It was a major change in how government officials have historically viewed and treated cryptocurrencies and blockchain technology.
Crypto was no longer a bad word. It was a national priority.
That’s because on July 18, the biggest piece of legislation related to digital assets was signed into law by President Trump – the GENIUS Act.
In the 30 days before the act was signed into law, digital assets became the major talking point on media outlets, Congressional members, and regulators. There was a unified push from all the major parties in Washington, D.C.
Even U.S. Treasury Secretary Scott Bessent was stating how important digital assets were for the future of America.
And as I’ll lay out today, that same push is about to happen again.
Only this time, it’s expected to have even greater significance and impact on an area of the market most aren’t aware exists.
Earlier today, SEC chairman Paul Atkins gave a keynote speech at the Inaugural OECD Roundtable on Global Financial Markets.
The meeting brings senior officials from ministries of finance, central banks, financial regulators, and others to discuss financial markets and policies.
It’s important to note just how significant this gathering is. The OECD – the Organisation for Economic Co-operation and Development – includes major organizations such as the Bank of International Settlements, the International Monetary Fund, and others. It’s literally the who’s who of global financial market policy.
There is no larger stage for this sort of thing.
And during Atkins’ speech, he went all-in on one thing. Read his words for yourself…
Crypto’s time has come.
For too long, the SEC has weaponized its investigatory, subpoena, and enforcement authorities to subvert the crypto industry. That approach was not only ineffective but injurious; it drove jobs, innovation, and capital overseas. American entrepreneurs bore the brunt – and have been forced to spend fortunes on building a legal defense instead of a business. That chapter belongs to history.
It is a new day at the SEC. Policy will no longer be set by ad hoc enforcement actions. We will provide clear, predictable rules of the road so that innovators can thrive in the United States.
He went on to talk about various global crypto-related policies and expressed the need to encourage builders, “Not suffocate them under red tape.”
But he didn’t stop there. He also expressed that America will be second to none. Essentially saying if you don’t join us, you’ll be left behind.
It’s clear this administration fully intends to accelerate the industry.
It’s a theme we’ve been covering for a while. And each time we hit the publish button, we find it hard to believe it’s possible for regulators, Congress, and/or the President to become even more supportive of digital assets and project even greater optimism.
But the trend and momentum just keep coming. And the possibilities for the industry keep rising. The energy around pushing digital assets forward only builds.
In fact, the last time we wrote about Paul Atkins, I wrote:
This is the most bullish week in crypto I’ve ever seen… And I’ve been active in the industry for over a decade now.
The market has not woken up to this whirlwind of development. The urgency I’m seeing is nearly impossible to articulate… I cannot emphasize enough the magnitude of the shift taking place over just the last week…
Since then, things have only continued further down that spectrum.
At the time, the SEC, CFTC, and White House were all advocating for “Project Crypto” as a way to move America’s financial system onchain.
It was unexpected. At best, I thought these parties would simply be green-lighting the asset class and welcoming it to the financial system. But they were flipping the script and saying the system will come to it.
And now the conversation is about how fast things will move, and if global leaders don’t want to be left behind, they’d better get on board now.
But why now?
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The speeches are all working up to what looks to be a September 30 vote on the CLARITY Act.
The date isn’t set in stone, but that’s not the point.
What matters is the CLARITY Act puts into place all of the things SEC Chair Atkins, the CFTC, and President Trump have been aiming to do as it relates to “Project Crypto.”
It gives a framework for digital assets to begin operating with clear rules of the road. No more legislation through enforcement, no more politicians wanting to create anti-crypto armies, no more fear of creating the next big thing.
It’s cutting the red tape and fostering innovation to thrive in the financial markets.
And here’s where things get interesting…
Democrats have been on the sidelines as it pertains to digital assets and crypto.
Democrat Elizabeth Warren, for example, was campaigning last year on creating an anti-crypto army.
Bernie Sanders viewed the GENIUS Act – a bill that regulated stablecoins instead of keeping them outside of the regulatory system – as a “dangerous bill.” He was given an “F” grade in how strongly he opposes crypto policy via the Stand With Crypto policy advocate organization.
The majority of senators who received an “F” were Democrats.
But here’s the thing… 12 Senate Democrats just extended an olive branch in Congress weeks ahead of the vote. Four of these Democrats received a “D” or “C” by Stand With Crypto.
Meaning we’re witnessing a breaking in the ranks.
The olive branch was a detailed framework for the CLARITY Act. They are preparing for negotiations before the vote.
This shows that the bill is not just a priority for the administration, Republicans, and regulators… But it is also becoming one that Democrats want to get ahead of before the vote.
And the response to the document has been very positive.
Republican Senator Cynthia Lummis, who has been a strong advocate for crypto policy, viewed this as “a strong start.”
Justin Slaughter, VP of regulatory affairs at Paradigm, one of the largest crypto VC firms, echoed similar sentiment, saying, “For the first time, I can see a path to bipartisan market structure legislation on crypto passing the Senate.”
We’re seeing a wave of optimism beginning to come through as it pertains to the CLARITY Act being signed into law.
And here’s where the opportunity sits…
Similar to the GENIUS Act, the market began to rally before its passage.
But the market hasn’t woken up to these news events yet.
Polymarket, an app where people can vote on possible outcomes, has current odds at 30% for the act to be signed into law this year. That’s down from the 87% odds seen when the GENIUS Act was getting signed into law.
That’s surprising.
The CLARITY Act was viewed as too ambitious back in July by industry experts. Many believed too much political capital was used up to pass the GENIUS Act.
But what we see with this recent push by the SEC, CFTC, and Trump administration, along with the olive branch by Democrats, is that the market is not positioned for the CLARITY Act.
What’s more is that this bill is far bigger in importance to digital assets than anything done to date. It makes the GENIUS Act look small in significance.
The market will reprice itself as we near this event.
But I left one tidbit out…
During the speech by Paul Atkins earlier today, he touched on a small sector that many aren’t realizing even exists in digital assets.
It’s a topic we’ve written about several times before at The Bleeding Edge.
The area represents the intersection of crypto and AI.
To quote Mr. Atkins…
Blockchain is reshaping how we trade and settle assets, artificial intelligence (AI) is opening the door to agentic finance – a system whereby autonomous AI agents execute trades, allocate capital, and manage risk at speeds no human can match, with securities law compliance embedded in its code… On-chain capital markets and agentic finance are on the horizon.
He’s articulating the Web3 Agentic Economy.
You can read more about it in The Agentic Economy Goes Permissionless, We also recently showcased that blockchains are already building out protocols that will act as a foundation to this new asset class coming online in A New Asset Class Is Coming.
There has never been a more exciting time for digital assets, one with incredible opportunity ahead.
Your Pulse on Crypto,
Ben Lilly
Senior Crypto Analyst, The Bleeding Edge
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
