The recent bitcoin halving has led to a price surge of over 300% since 2022, causing market volatility.

Traders are monitoring the effects of China's potential actions and new U.S. crypto legislation on the market.

Senators Lummis and Gillibrand introduced a bill to regulate stablecoins, requiring one-to-one cash reserves and banning algorithmic stablecoins.

The bill aims to prevent the illicit use of stablecoins and could influence mergers between issuers and banks.

Experts are divided on the bill, with some praising the move towards regulation, while others fear it may hinder financial innovation.

Major financial institutions are showing increased interest in crypto, with companies like BlackRock starting crypto-based initiatives.

The bill's passage could catalyze a shift towards on-chain payments and asset tokenization in the financial sector.

There are concerns that the bill may restrict innovation and conflict with First Amendment rights.

Legislation on stablecoins might not advance until the following year, while geopolitical use of cryptocurrencies, like by Venezuela's PDVSA to evade sanctions, underscores their growing global influence.

The U.S. is considering sanctions to limit some Chinese banks' access to the global financial system, potentially affecting China-Russia trade.