Wall Street Surges as Crypto Regulation Fuels Investor Confidence

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Wall Street notched another strong day as the S&P 500 hit its ninth record high of 2025, driven by surging crypto stocks and upbeat economic data. The passage of former President Donald Trump’s new crypto regulation law, the GENIUS Act, gave investors a clear signal that Washington is finally providing long-awaited clarity on digital assets.

On Thursday, the S&P 500, an index tracking 500 of the largest U.S. publicly traded companies, closed at a record 6,297.36, up 0.54%. The Nasdaq Composite climbed 0.75% to end at 20,885.65, marking its tenth record close this year. Meanwhile, the Dow Jones Industrial Average, the longest-running U.S. stock index, rose 229.71 points to 44,484.49. All three benchmarks touched new intraday highs as optimism fueled trading floors from Wall Street to Silicon Valley.

Fueling part of that rally was the GENIUS Act (Guiding Emerging Networks for Innovation in the U.S.), signed into law by Trump during a high-profile ceremony attended by tech leaders and lawmakers. The bill is the first comprehensive federal regulation of the cryptocurrency sector in U.S. history. Industry leaders have long called for such legislation, particularly to curb overreach by unelected bureaucrats at agencies like the SEC (Securities and Exchange Commission).

Crypto-related stocks surged in response. Coinbase closed up 2%, reaching its highest level since its 2021 IPO. Robinhood ended the day 4% higher, and Bitmine Immersion, a company managing Ethereum holdings, gained 1%. Investors interpreted the GENIUS Act as a pro-growth move that will lock in regulatory certainty, regardless of who occupies the White House next.

Noelle Acheson, an economist and author of Crypto is Macro Now, underscored the law’s significance: “This is the biggest deal in crypto so far this year. Being law rather than an agency ruling means that future administrations won’t be able to easily overturn its provisions.” She added that as crypto becomes more embedded in the global financial system, attempts to undo such legislation would be impractical at best.

While Ethereum (Ether) jumped 18% this week, bringing its two-week performance to 43.6%, its best since August 2021, Bitcoin slipped by 1%, weighing down companies tied directly to it. Strategy Inc. (formerly MicroStrategy) fell 6%, and Mara Holdings, a bitcoin mining company, dropped 2%.

Elsewhere on Capitol Hill, the CLARITY Act (Crypto Legal Accountability and Regulatory Infrastructure Transparency for You), a broader regulatory bill covering market structure, passed the House and now heads to the Senate. If it clears that chamber, it will land on Trump’s desk. The bill’s momentum underscores growing interest in setting clear boundaries for a digital asset market that has grown too large to ignore.

Outside the digital currency realm, the economic backdrop added to the bullish tone. The U.S. Labor Department reported a decline in initial jobless claims, down 7,000 to 221,000 for the week ending July 12. That signals the labor market remains stable despite ongoing debate about interest rates and inflation.

Consumer spending also came in hot. The U.S. Census Bureau reported a 0.6% increase in June retail sales, three times higher than what analysts had forecast. That data not only supports ongoing economic strength but is also feeding into strong earnings. Nearly 88% of S&P 500 companies that have reported so far beat earnings estimates, according to FactSet.

Corporate standouts included PepsiCo, which gained 7% after reporting better-than-expected results, and United Airlines, which rose 3%.

By week’s end, the S&P 500 is set to rise around 0.6%, the Dow about 0.3%, and the Nasdaq is leading with a 1.5% gain, proving once again that tech, and by extension crypto, remains the market’s engine.