(GENIUS Act) officially passed, the wave of institutional stablecoins has fully erupted, with market capitalization soaring to $264 billion!
With the United States passing the landmark (GENIUS Act), the stablecoin market is experiencing an unprecedented structural shift. This act provides clear federal regulations for banks, asset management companies, and crypto enterprises, promoting the compliance of fiat-backed stablecoins and attracting a large number of institutions.
Regulatory clarity stimulates market enthusiasm, leading to a surge in stablecoin market capitalization
According to Coinotag reports, the market capitalization of stablecoins has increased by nearly $4 billion in a short time, exceeding $264 billion, highlighting strong interest from capital in the compliant stablecoin sector.
Coinbase CEO Brian Armstrong states:
"I believe everyone should be able to create a stablecoin."
This statement not only represents an extension of the decentralized spirit but also indicates that stablecoins are gradually moving from institutional monopoly to a new era of public participation and transparency.
Key highlights of the GENIUS Act:
Clear requirements for stablecoin issuance: full reserves, regular audits, federal licensing
Enhancing compliance standards increases investor confidence and transparency
Promoting fiat-pegged stablecoins (like USDC, USDT) to become mainstream
Exempting high-risk mechanisms such as algorithmic stablecoins (e.g., Terra) from regulation
Banks and asset management companies are accelerating their entry
After the passage of the (GENIUS Act), many traditional financial giants responded quickly:
Anchorage Digital partners with Ethena Labs to launch the federally compliant stablecoin USDtb
WisdomTree launches a tokenized stablecoin USDW with payment functionality
JPMorgan, Citibank, Bank of America, and others have publicly stated: as long as regulations are clear, stablecoin plans will be launched immediately!
The increasing presence of institutions indicates that stablecoins are transforming from 'payment auxiliary tools' to a part of mainstream financial infrastructure.
Market outlook: Compliant stablecoins will deeply integrate TradFi and DeFi
As compliance risks decrease and transparency increases, stablecoins will rapidly expand into the following areas:
Global payment network
Asset Tokenization (RWA)
Decentralized Finance Applications (DeFi)
On-chain settlement and clearing mechanisms
At the same time, strict regulations will enhance market health, effectively preventing systemic risks and protecting consumer rights.
Conclusion:
(GENIUS Act) injects institutional dividends into the stablecoin market, opening a new cycle led by institutions. With the entry of banks, funds, and compliance organizations, stablecoins will no longer be marginal tools, but core components of financial infrastructure.
Investors should closely monitor innovative projects in this field, as the next breakout point is likely to be in the stablecoin sector!
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