We were pleased to see the GENIUS Act signed into law by President Trump on Friday, representing the first federal regulation of stablecoins. The total cryptocurrency market capitalization then quickly skyrocketed over $4 trillion for the first time ever. Surges in Bitcoin, Ether and other altcoins helped push the crypto milestone. This recent rush is perhaps a sign of a new major turning point for digital assets in the United States.
The GENIUS Act’s primary focus is on establishing a clear regulatory framework for the cryptocurrency industry. It especially zeroes in on stablecoins, a type of cryptocurrency pegged to real-world assets such as the U.S. dollar. The law was designed to promote responsible innovation while protecting consumers and maintaining market integrity.
"Just as I promised last year, the GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoin," - Trump
Bitcoin President Trump memory his keynote speech at last year’s bitcoin conference. This reflection was in large part due to his signing of the GENIUS Act.
"I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world," - Trump
Just last week, bitcoin soared to an all-time high over $123,205. At 5:30 p.m. ET on Friday, Bitcoin was trading at approximately $117,000. Ether was having a good run, up nearly 20% in the last five days to recently trade at just under $3,500. Following ether down the rabbit hole, Ether ETFs have raised a mind-boggling $2.9 billion in investment. Conversely, Bitcoin funds had record inflows of $5.5 billion in July alone!
The increases in market capitalization were gained, at least partially, from a wider rally in altcoins. Uniswap was the biggest gainer on Friday, soaring 20%, while Solana surged by 5.6%. Whether crypto is ready or not such movements are a reflection of greater interest and investment across many segments of the cryptocurrency market.
"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," - Chris Perkins
In a recent report, Citigroup analysts predicted massive expansion of the stablecoin market, forecasting it could balloon to $3.7 trillion by 2030. This forecast illustrates why the GENIUS Act can have a monumental impact on the development of stablecoins. It lays the groundwork for their inclusion into the traditional financial system.
Even as the market continues its upward momentum, many financial professionals recommend that new investors proceed with caution.
"Anyone who has never invested before, I’m not sure this is the best level to be buying crypto at the moment and in fact I would say the other way," - Ken Mahoney
"If you have some decent profits, it’s always good to sell it off incrementally." - Ken Mahoney
