The U.S. House of Representatives passed the first law on Thursday aimed at regulating stablecoins, a relatively stable form of cryptocurrency. The price of Bitcoin subsequently rose again to over $120,000 (€103,320).
The so-called Genius Act is now with President Donald Trump, who is expected to sign the law soon. The law sets clear rules for stablecoins: digital currencies that are linked to a fixed value.
The law paves the way for wider use of crypto in the financial world. This is good for the crypto sector, which has been lobbying for clear regulation for years.
Since Trump was elected President of the United States, interest in Bitcoin and other cryptocurrencies has increased significantly. This is because Trump said during his campaign that he wanted to ease the rules and supervision of digital currencies.
Although Bitcoin is not a stablecoin, the cryptocurrency did benefit from the new legislation. Bitcoin has already risen sharply in value this year. Earlier this week, Bitcoin went past $120,000 for the first time. Later, the price dropped somewhat, but the approval of the stablecoin law caused the price to rise sharply past the record high of $120,000.