On July 18, 2025, President Donald Trump signed the GENIUS Act into law, marking a significant milestone for the cryptocurrency industry. This legislation introduces a formal regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar—aiming to enhance their legitimacy and trustworthiness. The law mandates that stablecoins be fully backed by liquid assets, such as U.S. dollars and short-term Treasury bills, with monthly public disclosures of their reserves.
The passage of the GENIUS Act received bipartisan support in both the House of Representatives and the Senate, reflecting a growing consensus on the importance of clear regulations in the crypto space. Proponents argue that the new framework will boost consumer and institutional adoption, drive demand for U.S. Treasuries, and reinforce the dollar’s global dominance. President Trump emphasized that this move aligns with his vision to make the U.S. the “crypto capital of the world.”
However, the legislation has faced criticism from some quarters. Critics argue that the law lacks sufficient safeguards against money laundering and could grant undue power to large tech firms and foreign issuers. Despite these concerns, the stablecoin market, currently valued at over $260 billion, is projected to grow to $2 trillion by 2028 under the new framework, according to Standard Chartered.
The enactment of the GENIUS Act has had a notable impact on the cryptocurrency market. The global crypto market capitalization has reached a milestone valuation of $4 trillion, driven by investor optimism following the U.S. legislation supporting digital assets. Bitcoin has hit a new high above $123,000, and other tokens like Ether and Solana's Sol have also surged. This increase follows the U.S. Congress passing the GENIUS Act to regulate stablecoins tied to sovereign currencies, and the House approving additional digital asset rules, spurring hopes of institutional investment from Wall Street.
In related developments, cryptocurrency-related stocks have experienced significant gains. On July 18, 2025, Ether reached a six-month high of $3,675.81, leading to a surge in premarket trading for Ether-linked stocks. BitMine Immersion Technologies, for instance, rose 14% after disclosing it had accumulated over 300,000 Ether tokens and aims to own about 5% of the total supply. Other firms, such as Bit Digital and BTCS, also saw gains of 4% and 12.5%, respectively.
These developments underscore the rapidly evolving landscape of cryptocurrency regulation and market dynamics in the United States. As the industry continues to mature, stakeholders are closely monitoring the effects of the GENIUS Act and other legislative measures on the future of digital assets.
