Digital Currency Momentum Grows as Global Institutions and Legislators Embrace Strategic Shifts

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Recent developments in cryptocurrency policy and investment activity signal growing institutional interest and legislative adaptation globally. From House bills in the U.S. to stablecoin initiatives by global banks and energy-efficient mining proposals in Europe, digital assets are cementing their relevance in the broader financial landscape, despite short-term trading volume declines.

The digital asset sector continues to gather momentum as legislative and institutional interest aligns with evolving market strategies. This week, the United States House of Representatives, led by Republicans, advanced a package of cryptocurrency-related bills after  President Donald Trump’s direct intervention revived a stalled procedural vote. This outcome marks a strategic win for the digital finance sector, reinforcing the narrative that digital currencies are becoming integral to broader economic discussions.

Despite the bullish policy signals, market performance data reveals a nuanced picture. Research from TokenInsight reports a 19% decline in spot cryptocurrency trading volume in Q2 2025, down to $3.7 trillion from $4.55 trillion in the previous quarter. The drop is attributed to waning altcoin activity and thinning liquidity. In contrast, the derivatives market, noted for its hedging utility and risk-management capabilities, remains resilient, clocking $20.2 trillion in quarterly volume with only a modest 3.6% decline. Analysts cite cautious optimism amid uncertain macroeconomic conditions, including the Federal Reserve’s paused rate hikes and persistent global geopolitical tensions.

In market commentary, QCP Capital, a Singapore-based investment firm, highlighted Bitcoin’s temporary slowdown around the $114,000 mark following a brief rally past $118,000. Their analysts suggest a potential retracement to $110,000 may provide a stronger launchpad for future gains. The firm also pointed to seasonal lulls in traditional markets and currency headwinds, including a 10% fall in the US Dollar Index, as contributing factors to broader asset class behaviours. Despite headwinds, they maintain a structurally bullish long-term view.

Further afield, Hong Kong’s Securities and Futures Commission (SFC) has extended the allowance for visiting professionals to offer virtual asset services from 30 to 45 days per year, demonstrating a more accommodating regulatory stance. Meanwhile, French lawmakers are eyeing surplus nuclear energy for Bitcoin mining, with an estimated annual return of €100–150 million, and additional benefits such as grid balancing and greenhouse agriculture through recycled heat. This proposal, if adopted, would be a rare blend of industrial pragmatism and technological foresight.

Back in the UK, some British lawmakers are calling for a ban on crypto-based political donations, citing concerns over traceability and the potential for foreign interference. The move comes as the Reform UK Party became the first to publicly accept Bitcoin donations, drawing scrutiny and sparking debate about transparency in campaign financing.

Elsewhere, Bulgaria finds itself under retrospective criticism for offloading 213,519 Bitcoins seized in 2017, which were sold for $3.1 billion in 2018. At today’s valuations, the coins would have fetched over $25 billion, a figure that exceeds the nation’s entire public debt. The missed opportunity underscores the volatility and potential upside tied to long-term crypto holdings.

In the corporate arena, Citigroup and Bank of America (BoA) are both exploring tokenised deposit solutions for cross-border payments, with BoA awaiting legal clarity before moving forward. Jane Fraser, CEO of Citigroup, confirmed active discussions on stablecoin infrastructure, while BoA’s Brian Moynihan acknowledged slow progress due to regulatory uncertainties. Both institutions are keen to address the growing market demand for stable, efficient digital transaction methods.

From an investment standpoint, ARK Invest, led by Cathie Wood, liquidated $8.7 million in Bitcoin ETF shares, potentially locking in gains ahead of key economic data releases. Nansen analyst Nicolai Sondergaard suggested the sale reflects either profit-taking amid market momentum or a shift toward less volatile holdings.

Regulatory caution remains, as seen in the U.S. Securities and Exchange Commission’s (SEC) latest decision to delay ruling on the physical redemption mechanisms for Bitcoin and Ethereum ETFs managed by Bitwise. The delay highlights persistent hesitancy around operational logistics in crypto asset management, even as market sentiment continues to evolve.

In Asia, LD Capital’s founder, Yilhua Yi, announced a temporary pause in investment activity due to macroeconomic unpredictability, while Momentum 6’s Dennis Liu projected a potential altcoin rally in the coming 1–2 months. Liu also maintains that Bitcoin could surpass $150,000, provided current momentum holds. Notably, he advised investors to remain grounded, avoid chasing inflated prices, and focus on fundamentally sound projects.

Lastly, CME Group, the world’s largest derivatives exchange, is considering 24/7 crypto trading but has ruled out listing Meme coins like Dogecoin and Shiba Inu, citing a lack of substantive use case. Instead, CME’s expansion into assets like Solana (SOL) and XRP aligns with their infrastructure-driven strategy, with trading volumes already reaching several billion dollars.