The total market capitalization of cryptoassets has surged past the $4 trillion mark for the first time, signaling a pivotal moment for digital assets as they continue to gain legitimacy across both retail and institutional markets.

This historic rally was fueled by a combination of altcoin momentum, surging inflows into crypto ETFs, and major policy breakthroughs from Washington—most notably, the passage of the GENIUS Act and President Donald Trump’s plan to expand access to crypto within U.S. retirement accounts.

The milestone follows a dramatic week of legislative progress on Capitol Hill, where Congress passed three crypto-friendly bills during what has been dubbed “Crypto Week.” Chief among them is the GENIUS Act, a landmark bill regulating dollar-linked stablecoins through federal or state oversight. Championed by Republicans and backed by President Trump, the bill aims to legitimize a $265 billion stablecoin sector that Citigroup analysts forecast could grow to $3.7 trillion by 2030.

Meanwhile, President Trump is preparing to sign an executive order that could fundamentally reshape how Americans save for retirement. According to the Financial Times, the order would direct federal agencies to remove barriers preventing 401(k) and IRA plans from allocating funds into alternative assets, including cryptocurrencies, gold, private equity, and infrastructure investments. This initiative builds on Trump’s broader effort to “free crypto” from what he has described as overly restrictive regulations and would further embed digital assets into mainstream U.S. financial systems. The administration has already rescinded a Biden-era Labor Department warning against crypto in retirement portfolios.

Market participants view this policy shift as a game-changer, especially as major asset managers like Blackstone, Apollo, and BlackRock position themselves to offer crypto exposure through retirement products. Firms such as Vanguard and Empower are reportedly exploring integration deals, which could unlock massive new demand for digital assets across U.S. retirement accounts.

Investors have responded with enthusiasm. U.S.-listed crypto ETFs have seen a flood of capital in recent weeks, with Bitcoin funds attracting $5.5 billion in inflows so far in July, and Ether ETFs pulling in $2.9 billion. These investment vehicles are seen as a bridge for traditional investors to gain exposure to crypto without dealing with custody and private keys.

Altcoins have led the latest leg of the rally. Ethereum jumped more than 7% this week to trade above $3,600—its highest level this year—while XRP broke past its all-time high, soaring 20% to $3.62. Solana, Dogecoin, and Cardano also gained momentum, reflecting a broad rotation of capital into higher-risk, higher-upside assets. Uniswap spiked 24% on Friday alone, and Ether has rallied 22% over the past five days.

Bitcoin continues to dominate the space, accounting for nearly 60% of total market cap, valued at $2.38 trillion. The benchmark asset climbed to $123,205 earlier this week, with ETF inflows providing the foundation for its upward surge. Trading volumes exceeded $260 billion on Thursday, according to data from CoinMarketCap.

Analysts say the rotation from Bitcoin into altcoins marks a new stage in the market's maturity. With improved blockchain infrastructure and more robust regulatory clarity, the crypto space is attracting not only speculators, but also long-term investors and institutions. Congress’s approval of the GENIUS Act, the CLARITY Act (which defines how digital assets are classified), and the Anti-CBDC Act (which blocks the Fed from launching a digital dollar without Congressional approval) signals a regulatory environment increasingly supportive of innovation.