Bitcoin Surges Past $97,000 as Senate Advances Crypto Regulations

By Tristan, Contributor
May 2, 2025 – 1:30 PM CST, Chicago, IL

Bitcoin surged to $97,009.72 on May 2, 2025, driven by the U.S. Senate’s progress on the GENIUS Act, clarifying crypto tax and regulatory frameworks. The rally, fueled by investor optimism, positions Bitcoin near a $100,000 milestone. The legislation reflects President Trump’s pro-crypto stance, aiming to make the U.S. a digital asset hub.

Bitcoin’s meteoric rise follows a 2024 bull run, with prices doubling from $45,000. Regulatory uncertainty has long plagued crypto, with the SEC fining exchanges $2 billion since 2022. The GENIUS Act, debated since 2024, addresses tax reporting and anti-money laundering, boosting market confidence amid Trump’s 2025 crypto-friendly policies.

The Senate voted 60-40 to advance the bill, requiring crypto exchanges to report transactions over $10,000. Bitcoin’s 5% daily gain outpaced Ethereum’s 3%, with trading volumes on Coinbase hitting $10 billion. The rally followed Trump’s X post praising “American crypto innovation,” signaling White House support for the legislation.

Key stakeholders include Senators Cynthia Lummis, a bill co-sponsor, and SEC Chair Gary Gensler, tasked with enforcement. Crypto exchanges, like Binance, back the clarity, while privacy advocates, such as the Electronic Frontier Foundation, warn of overreach. Retail investors, 20% of U.S. adults per a 2025 Pew survey, drove trading surges.

Immediate impacts included a 2% rise in Nasdaq’s crypto-linked stocks, like MicroStrategy. X posts from traders trended #Bitcoin100K, predicting a year-end peak. Institutional investors, including BlackRock, increased Bitcoin ETF allocations, with $1 billion in inflows. Volatility spiked, with 3% price swings reported, testing market stability.

Long-term, the GENIUS Act could legitimize crypto, attracting $500 billion in institutional funds by 2030, per Bloomberg. It may also curb illicit transactions, estimated at 2% of crypto flows. However, overregulation risks stifling innovation, potentially pushing startups to Singapore or Dubai, a concern for U.S. competitiveness.

CoinMarketCap data confirms Bitcoin’s $1.8 trillion market cap, 50% of crypto’s total. A 2025 Treasury report estimates $50 billion in annual crypto tax revenue if passed. Lummis’s speech cited 10,000 U.S. blockchain jobs created in 2024, while Gensler warned of “systemic risks” without robust oversight.

Critics, including Senator Elizabeth Warren, argue the bill favors speculators, ignoring fraud costing investors $3 billion in 2024. Crypto skeptics, like economist Nouriel Roubini, predict a bubble, citing Bitcoin’s 20% volatility. Some traders fear tax reporting will deter retail participation, slowing market growth.

Globally, the U.S. move contrasts with the EU’s MiCA regulations, enforced in 2024, and China’s crypto ban. A 2025 IMF report notes 10% of global GDP tied to digital assets, with Singapore gaining as a crypto hub. U.S. leadership could reshape G20 crypto standards, influencing $2 trillion in flows.

The bill’s final vote, expected in July 2025, faces Senate amendments on privacy. Bitcoin may hit $100,000 by August if passed, per analysts, with a 20% correction possible if delayed. Trump’s planned crypto summit in September could further boost sentiment, driving altcoin rallies.

Challenges include Congressional gridlock, with 30% of Democrats opposing the bill. The SEC’s 1,000-person crypto unit struggles with enforcement, and hacking incidents, costing $1 billion in 2024, fuel skepticism. Public distrust, with 40% viewing crypto as risky per Gallup, complicates adoption.

Bitcoin’s surge and the GENIUS Act mark a pivotal moment for crypto’s mainstream integration. Balancing innovation and oversight is critical to sustaining growth. Investors and regulators must navigate volatility and global competition to cement the U.S. as a crypto leader.