Digital asset markets surged on Sunday following the U.S. Senate's advancement of the GENIUS Act—a significant piece of legislation aimed at establishing a regulatory framework for stablecoins. The bill, formally titled the Guiding and Establishing National Innovation for U.S. Stablecoins Act, passed a key procedural vote with a 66-32 margin, signaling bipartisan momentum after extended political stalemates.
The GENIUS Act seeks to introduce a clear and comprehensive legal structure for the $250 billion stablecoin market, which has operated with minimal oversight. Previous efforts to advance the legislation had stalled, in part due to political divisions and former President Donald Trump’s reported involvement in digital asset initiatives. However, Sunday’s vote suggests a growing legislative consensus around the need for regulatory clarity.
Ethereum (ETH) led market gains, rallying 2.3% within an hour of the vote and ending the day up 7.61% at $2,540.68. ETH's market capitalization rose 7.60% to $306.73 billion, even as its 24-hour trading volume declined 12.70% to $26.99 billion.
Bitcoin (BTC) followed suit, climbing 2.90% over the 24-hour period to $105,376.02. Its market cap rose 2.95% to $2.09 trillion, though trading volume dipped by 11.47% to $55.66 billion.
XRP posted more modest gains, rising 2% in the two hours following the vote before closing the day up 3.98% at $2.36. Its market capitalization increased by 3.43% to approximately $138.73 billion, while its trading volume fell 15.99% to $3.18 billion.
The sharp price movements highlight the cryptocurrency market’s heightened sensitivity to regulatory developments. As the GENIUS Act moves toward formal Senate debate, investor sentiment appears to be shifting in favor of a more defined and stable regulatory environment. This legislative progress is seen as a crucial step toward integrating digital assets into the broader U.S. financial system.
