Zcash Jumps 10% as US Bitcoin Reserve Bill Advances in Congress

TL;DR

• Zcash gained 10% to trade above $1,616, outperforming other major cryptocurrencies.

• Bitcoin held near $86,900 after rising 1%, while XRP climbed 6% to more than $1.62.

• The American Reserve Modernization Act advanced from a House committee by a 28-21 vote.

• An SEC innovation exemption supporting onchain trading of tokenized US stocks helped improve market confidence.

Zcash (ZEC) rose 10% to trade slightly above $1,616 during Wednesday’s Asian session, delivering the strongest performance among major cryptocurrencies as US regulatory developments improved sentiment across the digital-asset market.

Bitcoin remained near $86,500 after gaining approximately 1% over 24 hours. XRP advanced 6% to above $1.62, while Hyperliquid’s HYPE token climbed 4% to nearly $97.

Dogecoin also added around 4%. Ether, BNB and Solana each posted gains of less than 1%, while TRX was the only large token to decline, slipping approximately 1%.

The broadly positive performance followed developments in Washington involving a proposed US Strategic Bitcoin Reserve and an exemption intended to support onchain trading of tokenized stocks.

Zcash Leads a Broad Crypto Market Rally

Zcash’s double-digit increase placed the privacy-focused cryptocurrency comfortably ahead of other large-cap tokens during the session.

The move extended ZEC’s strong performance as buyers continued to favor selected altcoins amid improving market confidence. Although the immediate catalyst behind its outperformance was unclear, the broader rally provided a supportive backdrop.

Bitcoin’s ability to hold near $86,900 also helped stabilize sentiment. In an email to Cryptowisser, Lea Thompson, Marketing Manager at Cake Wallet, stated that Bitcoin's move to an eight-month high is being supported by a few forces coming together at once. 

“The sharp drop in oil prices is easing some of the inflation pressure that has weighed on markets, while equities are moving higher and investors appear more willing to take on risk. On top of that, Bitcoin has its own momentum right now, with continued institutional demand and a significant amount of short positioning being unwound. Taken together, it's creating a much more favorable environment for Bitcoin than we've seen in recent months," the analyst added. 

Moving above those long-term indicators can be viewed as a constructive technical development because they are commonly used to identify the market’s broader direction. Sustaining the breakout would strengthen the argument that buyers have regained control following the previous period of weakness.

Bitcoin’s relatively modest daily increase contrasted with stronger gains across ZEC, XRP, HYPE and DOGE, suggesting that traders were willing to take on more exposure to altcoins as confidence improved.

House Committee Advances Bitcoin Reserve Bill

One of the developments supporting sentiment was the House Financial Services Committee’s approval of the American Reserve Modernization Act.

The committee advanced the legislation on September 17 by a vote of 28-21, sending it toward consideration by the full House of Representatives. Dicarlo described it as the furthest a Strategic Bitcoin Reserve bill has progressed in Congress.

The legislation would place approximately 325,000 BTC already held by the US government into a Strategic Bitcoin Reserve managed by the Treasury. Most of those holdings originated from cryptocurrency seized through criminal and civil forfeiture proceedings.

Under the proposal, the government would be required to retain the bitcoin for at least 20 years. It would also have to publish quarterly audited evidence showing that the assets remain in the reserve.

The bill calls for a study examining ways for the government to acquire additional bitcoin without increasing the federal deficit.

Its advancement has renewed discussion about how the United States could manage its existing digital-asset holdings and whether bitcoin should become a long-term sovereign reserve asset.

However, the proposal still faces a lengthy legislative process. It must pass the full House and Senate before reaching the president, meaning its committee approval does not guarantee that it will become law.

The second development came from the US Securities and Exchange Commission, which has moved forward with digital-asset measures while the broader CLARITY Act remains stalled in Congress.

According to the report, the SEC used an innovation exemption to provide a route for tokenized US stocks to trade onchain. The initiative reportedly established that path within a day, lifting tokens connected to real-world asset tokenization and improving confidence across the wider cryptocurrency market.

Tokenized stocks digitally represent traditional securities on blockchain networks. Supporters argue that moving these assets onchain could enable faster settlement, programmable transactions, and wider trading availability.

The exemption may also signal that US regulators are willing to create targeted frameworks for blockchain-based financial products even without comprehensive cryptocurrency legislation from Congress.

Dicarlo said the regulator’s action helped fill part of the policy gap left by the delayed CLARITY Act. Greater regulatory clarity can encourage market participants to commit capital by reducing uncertainty over how digital-asset products will be treated.

The reserve legislation and tokenization exemption remain separate initiatives, but both contributed to expectations that the US policy environment may be becoming more supportive of digital assets.

Bonds, Oil and the Yen Support Risk Appetite

Developments in traditional markets also helped create a favorable environment for cryptocurrencies.

Government bonds rallied during Asian trading as oil prices continued to decline. Australian and New Zealand 10-year yields each dropped by at least three basis points, while US 10-year Treasury futures advanced. Cash Treasury trading was closed because of a Japanese holiday.

Brent crude slipped to approximately $99 per barrel, extending its decline to a sixth consecutive session—the longest losing streak in a year. The move followed comments from President Donald Trump that US officials held a “very good” meeting with Iranian representatives in New York as Washington renewed efforts to end the conflict.

Lower oil prices can ease inflation concerns, potentially reducing pressure on central banks to maintain restrictive monetary policies.

Meanwhile, the Bank of Japan raised interest rates last week in a 7-2 decision. The split vote led traders to expect a gradual pace of future tightening. The yen has weakened since the meeting, leaving Japanese borrowing costs comparatively low and allowing yen-funded risk trades to continue.

Combined with the positive US regulatory developments, those macroeconomic conditions gave traders a supportive backdrop for adding cryptocurrency exposure—helping Zcash lead the market’s latest advance.