*

Industry reaches landmark valuation

*

Bitcoin breached key $120,000 mark earlier this week

*

Lawmakers advance broader crypto regulation

*

Analysts forecast bitcoin at $200,000 by year-end

By Manya Saini

July 18 (Reuters) - The crypto sector's market value hit

$4 trillion on Friday, according to CoinGecko, marking a

milestone that reflects its shift from a nascent asset class to

a central part of the global investment landscape.

A wave of renewed optimism, regulatory clarity in key

markets and rising institutional flows have catapulted the

crypto sector to a new valuation peak.

The U.S. House of Representatives passed a bill on Thursday

to create a regulatory framework for U.S.-dollar-pegged

cryptocurrency tokens, known as stablecoins, sending the bill to

President Donald Trump, who is expected to sign it into law.

"The arrival of the Trump legislation signaled an about-turn

in attitudes towards the crypto industry, but legislators are

still exercising some caution," said Derren Nathan, head of

equity research, Hargreaves Lansdown.

House lawmakers also passed two other crypto bills, sending

them next to the Senate for consideration. One lays out a

regulatory framework for crypto, while the other seeks to ban

the U.S. from issuing a central bank digital currency.

The $4 trillion milestone underscores how far the crypto

industry has come from its speculative, fringe origins. With

growing interest from asset managers, new exchange-traded

products and broader adoption among retail and corporate users,

digital assets are increasingly shaping conversations in global

finance.

Stablecoins, a type of cryptocurrency designed to maintain a

constant value, usually a 1:1 dollar peg, are commonly used by

crypto traders to move funds between tokens. Their use has grown

rapidly in recent years, and proponents say they could be used

to send payments instantly.

"The Genius Act will go down in history as a law that served

as a foundational step in mainstreaming of crypto as an asset

class," said Chris Perkins, president, CoinFund.

Corporate treasury allocations to bitcoin are also gaining

pace, with a growing number of public companies adding the token

to their balance sheets as a long-term store of value.

The sector was last trading at a combined market value of

$3.92 trillion, as bitcoin - the world's largest cryptocurrency

- fell 1.8%.

Bitcoin crossed the $120,000 mark earlier this week,

setting a record. Brokerage Bernstein forecast it could climb to

$200,000 by end-2025.

Ether, the second-biggest crypto token, was last up 4.5%. It

has more than doubled over the past three months.

The crypto rally also powered gains in linked equities, with

Coinbase and Robinhood climbing to all-time

highs on Friday.

Shares of the crypto exchange were last up 1%, while the

retail trading platform, which also supports crypto trades,

gained 3%.

Ether-focused stocks also saw broad gains.