The impact of SEC Chairman Paul Atkins' statements on stablecoins on the cryptocurrency market
The statement by SEC Chairman Paul Atkins that stablecoins will help reduce costs and risks in the market, and enable instant payment and quick settlement, is considered a significant positive development for the cryptocurrency market. Here’s an analysis of the impact of this news on the market:
1. Boosting confidence in the market:
Increased optimism: Atkins' statements reflect a shift in the SEC's regulatory stance towards greater support for stablecoins, enhancing investor confidence. This support from a reputable regulatory body may encourage financial institutions to invest in digital assets.
Rising asset prices: According to posts on platform X, the cryptocurrency market has experienced a significant rise, with the total market capitalization exceeding $4 trillion, supported by favorable U.S. legislation, including the Stablecoin Regulation Act.
Recovery of crypto-linked stocks: Following President Donald Trump's signing of legislation regulating stablecoins, stocks of companies linked to cryptocurrencies saw a notable rise, reflecting an immediate positive impact on the market.
2. Strengthening the role of stablecoins:
Reducing costs and risks: Atkins' statement highlights the ability of stablecoins to reduce costs associated with traditional financial transactions, which may enhance their use in financial settlements and instant payments.
Increased demand: Demand for stablecoins is on the rise, with reports indicating that the trading volume of altcoins (such as stablecoins) has increased by 2.7 times compared to Bitcoin, reflecting growing interest in this sector.
New applications: Support for stablecoins may encourage the development of new applications in decentralized finance (DeFi) and cross-border settlements, enhancing the blockchain's role in the global financial system.
3. Impact on Bitcoin and altcoins:
Bitcoin: Despite a slight decline in Bitcoin's price to around $117,850 after peaking above $120,000, regulatory support boosts expectations for continued upward momentum, especially as the market approaches record levels.
Altcoins: Altcoins, such as Ethereum, recorded strong gains (22% over 5 days), supported by regulatory optimism and supportive legislation.
4. Challenges and risks:
Market volatility: Despite optimism, the cryptocurrency market remains highly volatile, as any delays or obstacles in implementing legislation could lead to temporary downturns.
Legislative opposition: Some Democrats have expressed concerns that the regulatory framework may be weak, potentially leading to long-term financial risks.
Previous stumbling: Efforts to pass supportive legislation for stablecoins stumbled in July 2025 due to objections from some conservatives, causing a temporary price decline.
5. The broader regulatory context:
Shift in SEC's stance: The appointment of Paul Atkins, known for his pro-crypto stance, as SEC Chairman has eased the regulatory pressures that prevailed during Gary Gensler's tenure. This shift contributed to judicial settlements (such as the Crypto.com and Gemini cases) and the conclusion of previous investigations.
Supportive legislation: The U.S. House of Representatives' passage of three major bills in July 2025, including a law regulating stablecoins and clarifying the jurisdictions of the SEC and CFTC, bolstered market optimism.
Strategic reserve: President Trump's plans to create a strategic reserve for cryptocurrencies (including Bitcoin, Ethereum, and Solana) have boosted prices and contributed to the upward momentum.
Market expectations:
Short-term: The upward momentum is expected to continue with increased institutional flows into exchange-traded funds (ETFs) and rising demand for stablecoins.
Long-term: A clearer and more supportive regulatory framework could enhance institutional adoption, pushing the market capitalization of cryptocurrencies to new levels, but investors need to exercise caution due to ongoing volatility.
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