On July 21, 2025, following the signing of the GENIUS Act by President Trump, a significant bullish reaction occurred in the crypto sector: Bitcoin and Ethereum reached levels close to historic highs, while multiple stocks linked to cryptocurrencies—such as Circle, Coinbase, and mining firms—recorded strong increases (Reuters).
What is the GENIUS Act?
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is the first federal legislation in the U.S. that regulates stablecoins, establishing requirements for:
1:1 backing with liquid assets like US dollars and Treasury bills.
Monthly audits and transparency of reserves.
Shared oversight between federal and state authorities. (Wikipedia, Cinco Días)
Approved in the Senate on June 17 (68 × 30) and in the House on July 17 (308 × 122), it was signed by Trump on July 18 (Wikipedia).
🚀 Market reaction
Bitcoin rose about 1%, reaching near $123,000, a new all-time high (Reuters).
Ethereum climbed to $3,783, a level not seen since December 2024 (Reuters).
In the stock market, the following stood out:
Circle (USDC issuer): +3%.
Coinbase: +2%.
BitMine, Bit Digital, BTCS, SharpLink: between +3% and +12.6%.
GameSquare Holdings: +4.6%, after announcing crypto investments (Cinco Días, Reuters).
The overall market capitalization of crypto surpassed US$4 trillion (Reuters).
🧭 Why does the market move so much?
Clear legal legitimization: users and companies now have legal backing, which generates trust (Cointelegraph, Reuters, Cinco Días).
Change of flows: with yields on regulated stablecoins banned, many opt for DeFi, Ethereum, or other alternatives (Reuters).
Boost to the crypto ecosystem: with a clear framework, institutional investors can resume exposure, also boosting Bitcoin as a store of value (Analytics Insight).
🔍 Looking ahead
Institutional adoption: more companies, banks, and tech giants are expected to venture into federally licensed stablecoins (21shares.com).
Potential bull run: analysts estimate that Bitcoin could surpass US$150,000 during this cycle when the legal framework for stablecoins is complete (Cointelegraph).
Risks to watch: links to public debt, systemic risk in case of a stablecoin failure, and future regulations on digital assets (Clarity Act) (Cinco Días).
📌 Conclusion
The approval of the GENIUS Act marks a turning point: it establishes a strong regulatory environment, reduces uncertainties, and provides confidence to institutional investors. This not only energizes Bitcoin and Ethereum but also boosts the stocks of crypto companies and opens a new chapter in the integration of traditional and digital finance.
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