Crypto market surges past $4 trillion milestone

(Reuters): The crypto sector's market value hit $4 trillion on Friday, according to CoinGecko, marking a milestone that reflects its shift from a nascent asset class to a central part of the global investment landscape.

A wave of renewed optimism, regulatory clarity in key markets and rising institutional flows have catapulted the crypto sector to a new valuation peak. The US House of Representatives passed a bill on Thursday to create a regulatory framework for US dollar-pegged cryptocurrency tokens, known as stablecoins, sending the bill to President Donald Trump, who was expected to sign it into law.

"The arrival of the Trump legislation signalled an about-turn in attitudes towards the crypto industry, but legislators are still exercising some caution," said Derren Nathan, Head of Equity Research at Hargreaves Lansdown.

House lawmakers also passed two other crypto bills, sending them next to the Senate for consideration. One lays out a regulatory framework for crypto, while the other seeks to ban the US from issuing a central bank digital currency.

The $4 trillion milestone underscores how far the crypto industry has come from its speculative, fringe origins. With growing interest from asset managers, new exchange-traded products and broader adoption among retail and corporate users, digital assets are increasingly shaping conversations in global finance.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years and proponents say they could be used to send payments instantly.

"The Genius Act will go down in history as a law that served as a foundational step in mainstreaming of crypto as an asset class," said Chris Perkins, President of CoinFund. Corporate treasury allocations to bitcoin are also gaining pace, with a growing number of public companies adding the token to their balance sheets as a long-term store of value.