*

Congress to debate key legislations next week

*

Bitcoin hits record high on crypto optimism

*

Skeptics cite likely volatility ahead to warn of hype

(Adds analyst comments, industry background in paragraphs

10-19; updates prices throughout)

By Niket Nishant and Manya Saini

July 11 (Reuters) -

U.S.-listed crypto stocks jumped in premarket trading on

Friday as bitcoin surged to a record high in the run-up

to a landmark week that could cement policy wins for the crypto

industry.

Starting July 14, the House of Representatives will

debate three major crypto bills that are likely to provide the

industry the regulatory framework in the U.S. that it has long

demanded.

The

lawmakers will discuss

the Genius Act, the Clarity Act and the Anti-CBDC

Surveillance State Act, in what has been dubbed as "Crypto

Week", amid growing bets that the industry's strained ties with

Washington is beginning to thaw.

This is a sharp reversal of fortune for a sector that had

once threatened to flee offshore, citing a hostile environment

and heavy-handed enforcement in the U.S.

"We expect capital that was previously sidelined due to

regulatory uncertainty to re-enter," said Jag Kooner, head of

derivatives at crypto exchange Bitfinex.

"Even if final passage stalls, the optics of legislative

engagement are bullish."

The world's largest cryptocurrency was last up 4% at

$118,101.45, taking its gains for the year to nearly 26%. The

digital asset has surged nearly 41% in the last three months.

Crypto exchange Coinbase added 1.5% before the

bell, while bitcoin buyer and holder Strategy rose 3.1%.

Crypto miners Riot Platforms ( RIOT ), Hut 8 ( HUT ) and

Mara Holdings ( MARA ) gained between 3.3% and 3.7%.

"Investors are racing to take positions ahead of the extra

publicity this event could attract," said Dan Coatsworth,

investment analyst at AJ Bell, referring to the Crypto Week.

SKEPTICS RAISE RED FLAGS

With crypto becoming more and more embedded in the

traditional financial system, some analysts warned the hype may

be outpacing reality, as it starts to displace gold as the

preferred hedge against equities.

"The (regulatory) backdrop has supported prices and

attention has turned to bitcoin's role in portfolios, with some

likening the crypto-asset to 'digital gold'. This moniker is

likely premature," said Dirk Willer, Citi's global head of

macro, asset allocation and emerging market strategy.

With likely volatility ahead, some analysts have also

cautioned investors to pause and weigh their time horizons

before jumping in.

"It's hard not to be optimistic about bitcoin at this moment

in time, but the risk of a fall in price or short-term pullback

still exists," said Simon Peters, crypto analyst at online

brokerage eToro.

Critics have argued that the Trump administration is

conceding too much to the crypto industry.

"I'm concerned that what my Republican colleagues are aiming

for is another industry handout that gives the crypto lobby

exactly its wish list," Democratic Senator Elizabeth Warren said

earlier this week.

She urged Congress to bar public officials, including the

President, from issuing, backing or profiting from crypto

tokens.

Trump has faced criticism from political rivals and ethics

experts over potential for conflicts of interest regarding his

family's crypto ventures.