The GENIUS Act was signed into law on July 18, 2025 by Trump. The new regulation creates a regulatory body on the stablecoin. The move has caused an immense impact to the market. Investment vehicles attached to cryptocurrencies skyrocketed after the signing. This comprises such stocks as Coinbase that increased by 7.6%.
The GENIUS Act requires stablecoins to have 100 percent reserve in U.S. dollars or low-risk collaterals. This regulation may serve to stabilize the market and to attract the attention of the institutional interest. Market analysts estimate that the stablecoin market would reach up to $2 trillion in 2028 compared to the current $260 billion.
Implications for the Stablecoin Market
The stablecoin market might be impacted tremendously with the new law. However, the law is more secure by insisting that stablecoin supporters with the U.S. dollar should be at the ratio of 1 to 1. This may also make treasuries of the United States more demanded under which the dollar stands as a world reserve currency. The legislation was under a lot of criticizm. Consumer Reports has complained that there are no consumer protections. This criticism brings out a conflict between compliance assurance and customer safety. It is changing the dynamics of the market. Although Bitcoin has been the main investment in the crypto industry, the stocks associated with stablecoins are becoming attractive. As an example, ether reached a six-month high recently, as it indicates the trend of the entire market.
Future of Stablecoins and Crypto Investments
The stablecoins are becoming compatible with conservative financial structures. This is now making investors rethink their investment strategy. The passage of the GENIUS Act opens a new era of stablecoins. It would expand the stable coin market and the crypto-related stocks even more. The dependency of crypto on traditional financial systems will become stronger every day.
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