Bitcoin, the cryptocurrency that has garnered significant attention worldwide, has surprisingly become inconspicuous in Washington.

This week, the U.S. lawmakers have passed the GENIUS Act, a landmark legislation that exclusively focuses on cryptocurrency, establishing clear federal guidelines for stablecoins. These digital tokens are tied to the U.S. dollar and facilitate instant payments, thereby providing a legal foundation for crypto in America for the first time.

However, there’s a notable omission: the bill fails to mention Bitcoin, and this silence is quite telling.

From Center Stage to the Periphery

For over a decade, Bitcoin has been at the forefront of every conversation related to cryptocurrency, symbolizing a revolution, a form of protest, and a modern equivalent of gold. It has been a subject of concern for politicians, a lucrative investment for billionaires, and a source of apprehension for banks.

Now, the U.S. government has enacted the most significant crypto law in history, and remarkably, it doesn’t include Bitcoin.

The reason behind this exclusion is that Bitcoin no longer aligns with the current agenda in Washington. Stablecoins have emerged as the favored cryptocurrency in the halls of Congress, as they are tied to the dollar, designed for payments, and subject to strict regulations. They represent a type of crypto that lawmakers can support, given their usefulness, tameness, and trackability.

In contrast, Bitcoin is perceived as problematic. Its volatility, anonymity, and ability to operate outside the traditional financial system make it unappealing to lawmakers who aim to modernize finance without relinquishing control.

Even as Wall Street invests heavily in Bitcoin ETFs and companies like BlackRock recognize its potential as a long-term asset, the government in D.C. remains silent on the matter. Bitcoin is being treated as a relic of the crypto industry’s rebellious past, rather than a part of its regulated future.

A Shift in the Balance of Power in Crypto

The passage of the GENIUS Act represents a significant political shift. Stablecoins are now endowed with regulations, protections, and the federal government’s endorsement, making them an attractive option for banks, fintech firms, and potentially, everyday consumers who wish to send money across borders or make digital payments.

Meanwhile, Bitcoin finds itself on the outside, still maintaining its popularity and power but lacking political support. If this trend persists, the future of crypto may belong to regulated, dollar-linked digital tokens, rather than the decentralized ideal that Bitcoin embodies. A crucial question arises: can Bitcoin remain relevant in a world shaped by the GENIUS Act?

For the time being, Bitcoin continues to hold a prominent position on Wall Street. However, in Washington, it is rapidly becoming an afterthought. In a city where the rules are being written, this is a precarious position to be in.