Things feel very different in crypto-land these days.
Years ago, when I used to go to cryptocurrency conferences, it was the most technical people you could imagine: programmers, mathematicians, cybersecurity experts.
These days, there are crypto conferences happening somewhere almost every week.
The attendees look like the sort of folks you might see at the mall, or Disneyland, or a baseball game.
You know… regular people.
Back in 2012, I went on to CNBC to discuss my new book and cryptocurrency. At the time, crypto was looked at by regular people as a scam or a gimmick.
Now it’s the daily topic of conversation on CNBC. Uber Technologies (UBER) drivers whiz through cities with their crypto trading apps open on one phone and their maps on another.
It’s safe to say that crypto has graduated from an obscure investment to something with a real mainstream following. And yet – despite the nonstop headlines and weekly record highs – crypto’s wild ride hasn’t even started…
Why You’re STILL Early
According to a report published earlier this week by research firm Gallup, just 14% of American adults currently own cryptocurrency.
Another 18% of Americans are open to buying cryptocurrency, with 4% of respondents planning to buy cryptocurrency in the near future.
Among investment professionals, cryptocurrency is viewed even more favorably.
A report published by consulting firm EY in January found that 59% of institutional investors – pension funds, endowments, hedge funds, etc. – plan to invest 5% or more of their assets under management in cryptocurrency this year.
While these survey results are encouraging, they are nothing compared to what comes next…
Crypto on Capitol Hill
There’s been a turning point for the entire crypto industry.
After years of regulatory uncertainty, Washington just had its first ever “Crypto Week.”
Bitcoin (BTC) responded by blasting past US$122,000 – shattering previous records.
The overall crypto market hit a historic $4 trillion in total value.
What changed? After years of being ignored or targeted, crypto finally has friends in high places.
The cornerstone of Crypto Week was the GENIUS Act – the first major U.S. cryptocurrency law ever passed.
President Trump signed it into law after a dramatic series of votes in Congress.
This law creates a clear framework for “stablecoins” – digital dollars that move on blockchains.
If you’re new to crypto, think of stablecoins as digital versions of the dollar that can be sent anywhere in the world instantly, 24/7, with minimal fees.
They’re called “stable” because one stablecoin always equals one dollar – unlike Bitcoin or Ethereum (ETH) which change in value constantly.
These digital dollars have become the backbone of the crypto economy.
Ethereum (ETH) currently hosts over US$130 billion in stablecoins on its blockchain.
That’s half of the $260 billion in total stablecoins across all blockchains worldwide.
Companies like Circle Internet Group (CRCL) (which issues USDC) and Tether (which issues USDT) are now positioned to become major financial players under the new law.
The new GENIUS Act is clear about how traditional stablecoins will be regulated, and we think Ethena has probably peaked for the time being.
Make no mistake, I’m still super bullish on stablecoins as a whole.
But they’re just one piece of the puzzle in crypto’s coming transformation.
Ethereum’s Next-Level Upgrade
While Bitcoin grabbed headlines with its price surge, Ethereum has been quietly making waves of its own.
Ethereum’s price has jumped over 65% in the past month, and for good reason.
The Ethereum development team just announced a breakthrough that will revolutionize how the network operates.
They’re implementing something called “zkEVM” – a technology that will make Ethereum faster and cheaper to use.
In simple terms, zkEVM uses advanced math proofs to verify transactions without the network having to process every single step.
It’s like the difference between checking someone’s entire work on a math test versus just confirming they got the right answer.
This upgrade will eventually allow Ethereum to handle far more transactions per second, potentially turning it into a real competitor to traditional payment networks like Visa or Mastercard.
For investors, this means Ethereum could soon support many more applications and users – driving demand for both ETH and tokens built on its network.
The Main Event: The CLARITY Act
As big as the GENIUS Act and Ethereum’s zkEVM announcements are, they’re just opening acts for the main event: The CLARITY Act.
This bill, which just passed the House with strong bipartisan support (294-134), would completely reshape the crypto landscape.
Currently, cryptocurrency projects exist in a regulatory gray zone that’s stifling innovation.
The Securities and Exchange Commission (SEC) has been treating nearly all cryptocurrencies as securities (like stocks) – requiring extensive registration and compliance that’s almost impossible for decentralized projects.
This approach has forced many crypto companies to build overseas instead of in America.
The CLARITY Act would change all that by creating a clear path for cryptocurrencies to be regulated as commodities instead of securities.
This distinction is huge.
Commodities face much lighter regulation than securities, and they’re overseen by the Commodity Futures Trading Commission (CFTC) rather than the SEC.
The bill provides objective criteria for when a cryptocurrency qualifies as a “digital commodity” rather than a security.
For crypto investors, this is like discovering a new continent of opportunity.
Projects that have been afraid to launch in the U.S. would finally have a clear roadmap to compliance.
Existing projects could transition from SEC oversight to CFTC jurisdiction once they become sufficiently decentralized.
And most importantly for altcoin investors – this would open the floodgates for innovation in the crypto space.
With clear rules, entrepreneurs would be free to build new blockchain applications without fear of unexpected regulatory crackdowns.
This could trigger an explosion of new tokens and use cases – from decentralized finance to gaming, social media, and more.
What This Means for Altcoins
Altcoins – cryptocurrencies beyond Bitcoin and Ethereum – stand to benefit enormously from these developments.
Currently, many promising altcoin projects avoid U.S. markets entirely due to regulatory uncertainty.
With the CLARITY Act potentially becoming law by September, these projects would have the green light to fully engage with American users and investors.
Imagine thousands of innovative projects suddenly having access to the world’s largest economy and investment capital.
Projects building on Ethereum would benefit doubly – from both the zkEVM upgrade making the network faster and the regulatory clarity allowing them to operate without fear.
The timing couldn’t be better.
With institutional investors planning to allocate significant portions of their portfolios to crypto, and only 14% of Americans currently owning any, we’re still at the very beginning of adoption.
Crypto Summer
As we head into August, all signs point to a historic summer for cryptocurrency.
The GENIUS Act is now law, providing a foundation for stablecoins to flourish.
Ethereum’s zkEVM upgrade is making rapid progress, promising to supercharge the network.
And the CLARITY Act is moving through Congress with strong momentum, potentially reaching the President’s desk by September.
Each of these developments alone would be significant for crypto markets.
Together, they represent a perfect storm of positive catalysts that could drive prices to levels that today seem unimaginable.
We’re witnessing the transformation of cryptocurrency from a fringe technology to critical financial infrastructure.
And if you think the past few weeks have been exciting, just wait until the real bull market starts.
Regards,
James Altucher,
Editor, Investment Network Australia
Murray’s Chart of the Day –
Lithium
|
Source: Tradingview |
The rise in lithium prices continues from depressed levels.
Whether this is the low of the bear market in lithium or not remains open to conjecture.
Supply continues to rise rapidly which may continue to weigh on prices moving forward.
Supply surged 35% last year with big increases from China, Indonesia and Democratic Republic of Congo.
But long-term demand for lithium remains promising.
Rather than trying to pick the exact low in the bear market I think it makes more sense to dip the toe into the water, with a view of increasing exposure as the bull case firms up.
If there is more weakness ahead you can continue to pick up cheap stock in the strongest companies that have the best chance of surviving depressed market conditions.
Increasing exposure to Argentinian brine operations is another avenue to increase lower risk exposure to lithium.
Brine-based extraction averages around US$4,200/t LCE (Lithium Carbonate Equivalent), compared to about US$5,800 /t from Australian spodumene, which makes Argentina a cost‑competitive producer.
Regards,
 |
Murray Dawes,
Editor, Retirement Trader
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