The virtual asset market in the second week of July showed strong upward momentum as macroeconomic uncertainties gradually dissipated, easing concerns about a recession. Bitcoin closed at $115,670, up 5.5% from the previous week, setting a new all-time high, while Ethereum surged 13.3% to $2,942. In the altcoin market, buying momentum expanded around meme coins and DeFi assets such as Bonk (BONK, +35.78%), Floki (FLOKI, +25.24%), and Raydium (RAY, +24.14%), creating an overall bullish atmosphere.
The key driver of the market this week was the positive employment indicators. The number of new unemployment claims for the first week of July was 227,000, falling below expectations and marking the lowest level in seven weeks. The recovery trend in the job market alleviated concerns about a recession and supported investor sentiment toward risk assets. Additionally, the recent slowdown in oil demand raised the possibility of OPEC suspending production increases, resulting in a slight decline in oil prices, which further lowered inflationary pressures.
◇ U.S. House to vote on stablecoin legislation ‘GENIUS Act’
The U.S. House decided to withdraw its own proposed stablecoin regulation bill (STABLE Act) and instead hold a direct vote on the ‘GENIUS Act,’ which was passed by the Senate. This is seen as the first legislative achievement in the regulatory roadmap for virtual assets led by President Trump, and the industry is accepting the enactment of the law by the end of this year as a near certainty.
The GENIUS Act includes strong consumer protection clauses, such as a 100% reserve requirement for stablecoin issuers like USDC and USDT, annual external audits, and preferential recovery rights in bankruptcy, aiming to establish a comprehensive regulatory framework for stablecoins for the first time at the federal level in the United States. Notably, the House’s shift in legislative priorities aligns with the 'Crypto Week' taking place in mid-July, which could expedite President Trump's commitment to sign the bill by August.
Following the GENIUS Act, the House is expected to focus on the ‘CLARITY Act,’ a bill concerning the structure of the virtual asset market. This bill seeks to clarify regulatory jurisdiction between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) and aims to ensure clarity in the operation of virtual asset trading markets in the United States through the definition and classification of digital assets. Additionally, a bill prohibiting the issuance of Central Bank Digital Currency (CBDC) will also be discussed as a key agenda item during this Crypto Week.
◇ The virtual asset industry crosses the threshold to ‘venture companies’ after 8 years
The Ministry of SMEs and Startups has initiated amendments to the venture special law enforcement decree to grant ‘venture company’ status to virtual asset companies for the first time in 8 years. Previously excluded from venture benefits alongside entertainment venues and casinos, the virtual asset industry is now poised to be recognized as a blockchain technology-based industry.
According to the amendment, companies utilizing blockchain and digital asset technologies will be able to obtain formal venture company certification if they meet certain technology evaluation criteria. This represents a turning point for the industry, which has been seeking to return to the venture ecosystem since the revocation of venture certification for Dunamu, the operator of Upbit, following amendments to the enforcement decree in 2018. Once venture company certification is granted, benefits such as income and corporate tax reductions, access to policy financing, and participation in government R&D projects will resume, with the industry viewing this as the first step toward institutional entry into the digital finance sector.
However, projects that focus solely on simple coin issuance are still likely to remain excluded from certification, indicating that evaluations will center more on technology rather than asset value. Experts emphasize the urgency of regulatory reforms for Korea to secure leadership during this global financial transition by redefining the virtual asset industry as a future strategic industry.
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providing on-chain data-based essential operational solutions and trust-based community building services to companies and foundations adopting Web3. They operate the crypto data intelligence platform Jangle, and the Jangle research team creates content to illustrate the trends in the virtual asset investment industry based on global virtual asset information and data.