Bitcoin’s rebound is pulling crypto stocks higher, but the bigger story may be Washington. Trump’s push for clearer crypto rules, talk of bringing Hyperliquid into the US and renewed pressure on the dollar are giving the sector a fresh catalyst.
A fresh rally for crypto stocks
Crypto stocks are having another strong run as Bitcoin climbs to its highest level in more than two months.
The move comes after President Donald Trump met with senior executives from the crypto industry at the White House and made it clear that his administration wants the US to remain a major hub for digital assets.
That message has quickly found its way into markets.
Strategy, Coinbase, Circle and Galaxy Digital all gained at least 5% intraday on Thursday, extending the rally that began a day earlier.
For investors, the interesting part is that this is not just a Bitcoin story. The move is spreading across companies that sit at different parts of the crypto ecosystem, from exchanges and financial infrastructure to companies with large crypto holdings.
Trump is putting regulation back at the centre of the trade
One of the biggest catalysts is the renewed push for crypto legislation.
Trump urged Congress to move forward with the Clarity Act, a market structure bill that aims to establish clearer rules around digital assets and define the roles of regulators.
The bill has struggled to move through the Senate, partly because of concerns surrounding Trump’s personal involvement in crypto.
But the market is now looking at a potential September 15 vote as an important moment.
The key point is not necessarily that investors suddenly believe the legislation will definitely pass.
Instead, the market had been pricing in a relatively low probability of meaningful progress. Trump’s intervention has changed that calculation.
When expectations are low, even a modest improvement in the odds can move stocks sharply.
That is exactly what appears to be happening in crypto equities.
Why regulatory clarity matters
For crypto businesses, uncertainty around regulation has been a major issue for years.
Companies can build products, attract customers and expand their businesses, but the rules governing those activities can change depending on how regulators interpret existing securities and commodities laws.
Clearer rules could change that.
Robinhood CEO Vlad Tenev said regulatory clarity would help customers feel more protected and give businesses greater confidence that the rules will not change dramatically with every administration.
That matters for the broader industry because institutional investors are generally more comfortable putting money into markets where the regulatory framework is easier to understand.
A clearer rulebook could therefore do more than help individual crypto companies. It could make the entire US crypto market easier to scale.
And even if Congress does not deliver the Clarity Act, there are other avenues.
The SEC and CFTC could continue moving ahead with their own rulemaking. The SEC has already proposed exemptions that could make it easier for certain digital assets to avoid traditional securities registration requirements.
Then there is Hyperliquid
Another interesting part of the story is Hyperliquid.
Trump said the Commodity Futures Trading Commission was working to bring the crypto exchange into the US.
That is significant because Hyperliquid has built a strong position in perpetual futures, one of the most active areas of crypto trading.
The prospect of US access has already had an impact on related stocks.
Hyperliquid Strategies surged 30% on Wednesday and gained as much as 7.2% on Thursday.
For companies such as Coinbase, Bullish and Circle, the potential expansion of alternative crypto trading into the US could create new opportunities.
But there is another side to the story.
More competition could put pressure on established exchanges.
That explains why traditional exchange operators such as Cboe, CME and Nasdaq came under pressure when the Hyperliquid news first emerged.
If US rules eventually allow perpetual-style products to become more widely available, existing exchanges may have to respond with products of their own.
For investors, that creates an interesting question:
Will regulatory clarity expand the crypto market for everyone, or simply intensify the competition between platforms?
The dollar is another part of the equation
The crypto rally is also happening against a backdrop of weakness in the US dollar.
Treasury Secretary Scott Bessent’s efforts to increase buybacks of longer-term Treasury debt have pushed bond yields lower and added to concerns about the future purchasing power of the dollar.
That matters for Bitcoin.
One of the long-standing arguments for Bitcoin is that it can act as an alternative asset when investors become concerned about traditional currencies and monetary policy.
So when the dollar comes under pressure, Bitcoin can become more attractive to investors looking for an alternative store of value.
The combination of a weaker dollar and stronger Bitcoin is providing another tailwind for crypto-related equities.
But the recovery is far from complete
The latest rally looks impressive, but investors should keep the bigger picture in mind.
Crypto stocks are still well below their previous highs.
According to Bloomberg, Strategy remains down about 80%, Circle is down around 70% and Coinbase has fallen more than 60% from their previous levels.
Bitcoin itself had also suffered a major decline, falling more than 40% from October through Wednesday’s close before the recent rebound.
So while sentiment has improved, the sector is still in recovery mode.
That distinction matters.
A sharp rally from depressed levels does not necessarily mean the previous cycle highs are about to return. It does, however, show how quickly crypto equities can respond when several catalysts arrive at the same time.
What investors are watching now
There are several developments that could determine whether this rally has legs.
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The Clarity Act: The September 15 vote could become an important test of Washington’s willingness to deliver clearer crypto rules.
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SEC and CFTC action: Even without new legislation, regulatory agencies could continue opening the door for digital asset businesses.
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Hyperliquid’s US expansion: Bringing more perpetual futures trading into the US could reshape the competitive landscape.
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Bitcoin momentum: Crypto stocks remain highly sensitive to the direction of Bitcoin. A sustained Bitcoin rally would likely provide further support.
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The US dollar: Continued dollar weakness could reinforce the investment case for Bitcoin and other digital assets.
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Institutional adoption: Greater regulatory clarity could make it easier for traditional financial institutions to participate in crypto markets.
The bigger takeaway
The latest move in crypto stocks is about more than Bitcoin going up.
Washington is becoming an increasingly important part of the crypto investment story.
Trump’s public support, the potential progress of the Clarity Act, the possibility of Hyperliquid entering the US and a weaker dollar have all combined to improve sentiment.
But investors should also remember how quickly this market can move in both directions.
The real test will be whether the current optimism turns into actual regulatory progress, stronger crypto activity and sustained Bitcoin demand.
For now, the market is betting that the policy environment around crypto is finally moving in a more favourable direction.
And when expectations are as low as they were, that shift can be powerful.