On July 18, 2025, President Donald Trump signed the GENIUS Act into law, establishing a comprehensive regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar. The bipartisan legislation 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. This move aims to enhance the legitimacy and trustworthiness of stablecoins, potentially boosting consumer and institutional adoption.
The GENIUS Act's passage is viewed as a significant victory for the crypto industry, which has long advocated for clearer regulatory guidelines. Proponents argue that the law will drive demand for U.S. Treasuries and reinforce the dollar's global dominance. However, critics express concerns about insufficient safeguards against money laundering and the concentration of power among large tech firms and foreign issuers.
In tandem with the GENIUS Act, the global cryptocurrency market has reached a valuation of $4 trillion, driven by investor optimism following major U.S. legislation supporting digital assets. Bitcoin has achieved a new high above $123,000, and other tokens like Ether and Solana's SOL have also surged. This growth 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.
The surge in cryptocurrency valuations has positively impacted related stocks. On July 18, 2025, cryptocurrency-related stocks experienced significant gains, with BitMine Immersion Technologies rising 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. This rally is largely attributed to growing demand for stablecoins, most of which are issued on the Ethereum blockchain, fueling Ether's use for transaction fees.
Despite the positive momentum, concerns persist regarding the potential risks associated with the rapid expansion of the cryptocurrency market. Critics, including Senator Elizabeth Warren, warn that the move may pose systemic financial risks and concentrate power in a few firms. Previously ongoing lawsuits against crypto firms under the Biden administration have been dropped under Trump's leadership, raising questions about the adequacy of regulatory oversight.
In summary, the enactment of the GENIUS Act represents a pivotal moment in the evolution of cryptocurrency regulation in the United States. While it offers a structured approach to stablecoin oversight and has contributed to significant market growth, it also brings to the forefront critical discussions about financial stability, regulatory effectiveness, and the broader implications of digital asset integration into the global economy.
