Since yesterday afternoon, the price of Dogecoin (DOGE -2.78%) has traded nearly 4% higher, as of 11:04 a.m. ET today. There is no obvious reason for the move, although it can likely be attributed to broader tailwinds for the crypto sector.
Crypto legislation is back on track
As a meme token with very little real-world utility, there are rarely specific catalysts that move Dogecoin. However, the token is volatile and tends to join in broader crypto moves.
Image source: Getty Images.
This week, the U.S. House of Representatives began "Crypto Week" to vote on three key pieces of legislation in the House. The GENIUS Act would establish a set of standards for stablecoins, the CLARITY Act would create a broader framework for digital assets, and the Anti-CBDC Surveillance State Act would prevent the Federal Reserve from issuing its own central bank digital currency.
Yesterday, the House failed to approve the GENIUS and CLARITY Acts, two bills that crypto advocates see as crucial for clearing up regulatory uncertainty in the industry and promoting growth. But last night, President Donald Trump on social media said he had met with some House members that had blocked passage of the bills and convinced them to change their minds.
Oppenheimer analyst Owen Lau recently said on CNBC that the downward reaction to crypto stocks yesterday was an overreaction and he sees passage of the GENIUS and CLARITY Acts as a matter of time.
The bills are important
Ultimately, these pieces of legislation are important to keep the momentum going, and I think crypto has been surging as of late on the assumption they will pass. Most importantly, the legislation would provide regulatory clarity and a set of guidelines for crypto companies to follow, which has been an ongoing problem for the sector.
That said, I still don't view Dogecoin as a buy. The token provides no compelling use case and is extremely volatile. Invest at your own risk.
