From stablecoins to Layer-2 technologies, Ethereum seems to be in a strategic position that may qualify it to lead the next wave of digital currency adoption, especially after the GENIUS Act provides the long-awaited legal clarity.
Ethereum hosts the largest share of stablecoins worldwide, including USDT and USDC, and with the implementation of the GENIUS Act, we may see a surge in on-chain transaction volume and decentralized finance (DeFi) activity, along with increased interest from major institutions in using these fully-backed currencies.
GENIUS Act: Green light for Ethereum
The new law aims to provide an innovation-friendly regulatory environment by simplifying compliance requirements and encouraging institutions to enter the world of digital currencies, with a special focus on the DeFi sector and smart contracts.
The legislation focuses on requiring stablecoin issuers to maintain full reserves, obtain a federal license, and comply with anti-money laundering regulations. This step enhances trust in major projects like Circle and Ripple, but places Ethereum at the heart of the landscape thanks to its mature infrastructure and the presence of influential figures like co-founder Joseph Lubin in legislative consultations.
Crypto attorney John Deaton believes this law could give Ethereum a significant boost towards wider institutional adoption, enhancing its position as a foundational pillar in the upcoming digital financial system.
Temporary decline... and potential rise
Despite the strength of these developments, the price of Ethereum has recently declined by about 8%, affected by weak U.S. employment data for July 2025 (only 73,000 new jobs versus expectations of 170,000). These figures triggered a wave of 'risk aversion' that caused the prices of Bitcoin and other cryptocurrencies to drop.
However, analysts believe that this decline is short-term, and the impact of the GENIUS Act in the long run may outweigh these temporary pressures.
The numbers speak
The total value of stablecoins reached $250 billion in July 2025, an increase of $4 billion from the previous month, reflecting growing confidence among investors and issuers in a clearer regulatory environment.
This atmosphere gives Ethereum a golden opportunity to expand its uses in decentralized finance and business applications, supported by the Dencun upgrade that reduced transaction fees and made the network more attractive.
Summary
The GENIUS Act could be a historic turning point, granting stablecoins legitimacy within the U.S. financial system and positioning Ethereum in a leadership role.
If macroeconomic conditions continue to improve, we may witness a historic bull run led by Ethereum in 2025, possibly for the first time surpassing Bitcoin in terms of impact and growth.