From May 19 to 23, the price of Bitcoin recorded a strong upward trend, breaking its all-time high. This is in contrast to the mixed performance of the New York stock market due to concerns over the deterioration of the U.S. fiscal situation. This can be interpreted as increasing expectations that virtual assets are entering the regulatory framework with the passage of the 'Stablecoin Bill.'
On the afternoon of the 23rd, the price of Bitcoin reached $110,614. It fell by 0.3% compared to 24 hours earlier, but rose by 6.5% compared to a week ago. The price of Bitcoin surpassed its previous high of $109,300 on the 22nd, briefly soaring to $119,900.
Ethereum, the leading altcoin, recorded a price of $2,658, up 1.88% from a week ago. During the same period, Worldcoin rose by 32.18%, Hyperliquid by 28.02%, and DogeWhipHat by 21.69%, showing strong performance.
This upward trend stood in stark contrast to global financial markets. Previously, the U.S. national credit rating was downgraded from 'Aaa' to 'Aa1,' spreading anxiety. Particularly, U.S. President Donald Trump pushed for a tax cut and expenditure bill that passed the House of Representatives, raising concerns about expanding fiscal deficits. The long-term yield on U.S. Government Bonds surpassed 5%, while the New York stock market remained stagnant due to diminished investor sentiment.
However, the virtual asset market is witnessing increased expectations due to the passage of the Stablecoin Bill (GENIUS Act) and news that Hong Kong is also moving towards the legislation of stablecoins. Over the past week, more than $1.9 billion has flowed into Bitcoin spot Exchange-Traded Funds (ETFs), indicating a clear inflow led by institutions.
Hwang Hyo-jun, a researcher at JENGLE, noted, "In traditional financial markets, credit issues and fiscal instability have heightened risk-averse sentiment, but the virtual asset market is exhibiting a contrasting trend with the clarification of regulations and expectations for entering the regulatory framework. In the short term, visibility of regulations and institutional-driven supply and demand are expected to support the rally, while rising long-term interest rates and macroeconomic uncertainties may still act as risk factors."
◇ U.S. officially begins stablecoin regulation
The U.S. Senate's passage of the GENIUS Act aimed at regulating stablecoins has intensified legislative discussions. During the voting process, changes in positions within the Democratic Party played a role as a variable, resulting in more supportive votes than expected. It is now ahead of the House's review and vote.
This bill mandates that stablecoin issuers hold liquidity assets at a 1:1 ratio, such as U.S. dollars or equivalent Government Bonds, and restricts issuance to banks or certified non-bank financial institutions. Additionally, issuers must be subject to federal and state government supervision. It includes provisions for consumer protection, anti-money laundering, and compliance obligations for foreign issuers.
This bill has garnered attention in the industry as it defines and supervises stablecoins within the regulatory framework. There is growing anticipation that the digital asset market can secure new growth momentum as the previously uncertain regulatory environment is organized within a systematic structure.
A JENGLE representative evaluated, "This is not merely the beginning of regulation, but a significant event declaring that the U.S. is ready to accept stablecoins as regulated financial assets."
◇ Democratic Party considers establishing 'Digital Asset Agency'
The Democratic Party of Korea is reported to be reviewing the establishment of a dedicated agency for virtual assets, called the 'Digital Asset Agency.' This is connected to the promise made by presidential candidate Lee Jae-myung to introduce a won-based stablecoin, with discussions ongoing on which agency will be granted the authorization, including the Financial Services Commission, the Bank of Korea, and the establishment of an independent agency.
This promise aims to incorporate the virtual asset market into the regulatory framework through the Digital Asset Agency, introducing management and supervision at the level of the stock market to foster market trust and promote investment. It is also interpreted that the idea to escape the strict regulations of financial authorities influenced this promise.
In the virtual asset industry, it is analyzed that if the establishment of the Digital Asset Agency becomes a reality, it will reduce dependency on dollar-based stablecoins and strengthen the won-based digital payment infrastructure to respond to global currency competition. A JENGLE representative stated, "This is similar to the proposal for the establishment of a 'Blockchain Agency' that was discussed as an external agency under the Ministry of Science and ICT in the past. It is seen as a move to incorporate digital assets into part of the national economic infrastructure, beyond a simple regulatory body."
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A provider of essential operational solutions and trust-based community building services targeting companies and foundations adopting Web3. It operates the crypto data intelligence platform JENGLE, and the JENGLE research team is creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.