Cryptocurrency prices and related stocks rose on Wednesday, as investors brushed off a legislative hurdle that derailed what was expected to be a successful week for digital asset regulation.
According to Coin Metrics, Bitcoin climbed 2% to $119,114.79, while Ether gained 3% to reach $3,156.
Shares of Circle, the stablecoin issuer, rose more than 1% in pre-market trading, while Coinbase gained around 0.5%, rebounding after both stocks closed lower the previous day. Ether-treasury stocks extended their rally, with BitMine jumping 24%, SharpLink rising 14%, and Bit Digital up 5%.
On Tuesday, prices briefly dipped after the US House of Representatives failed to pass two key pieces of crypto legislation: the “GENIUS Act” for stablecoin regulation — which had already cleared the Senate — and the more comprehensive “CLARITY Act”, which is still awaiting a vote in the House.
Several industry players, including Coinbase, had hoped both bills would pass together, but only one had been approved by the Senate, and the broader legislation hasn’t yet reached a House vote.
Owen Lau, an analyst at Oppenheimer, told CNBC the market overreacted, emphasizing that it’s a matter of “when, not if” the bills are passed.
“It’s not that bad,” Lau said. “That’s why Coinbase and Circle rebounded in late trading. These stocks might stay under pressure until a vote happens, but eventually, the legislation will pass after negotiations conclude.”
Lau added that whether the bills pass together or separately is less important for the long-term value of the stocks, though markets would react more positively to a unified vote since that would remove uncertainty lasting three to four months.
On Tuesday evening, President Donald Trump said via social media that several House Republicans who had initially blocked the legislation had changed their stance after a White House meeting and would now support its passage.
The current version of the GENIUS Act prohibits stablecoin issuers from offering interest to users, which boosts the role of Ethereum’s ecosystem — favored by institutions — since it underpins many stablecoins and decentralized applications.
Still, Ether’s recent rally is largely driven by momentum and speculation, rather than strong fundamentals.
According to Markus Thielen of 10x Research: “Active addresses haven’t increased, network revenue remains flat, and gas fees are only slightly higher.”
Ether’s price has doubled over the past three months.
Meanwhile, Bitcoin, which had dropped earlier this week after $360 million in long liquidations on Monday, dipped again following the legislative delays but quickly rebounded. On Monday, it had hit an all-time high above $120,000.
Data from SoSoValue showed that Bitcoin ETFs attracted $402.99 million in institutional inflows on Tuesday, while Ether ETFs saw $192.3 million in inflows.
