A new American legislation leads to a $4 billion jump in the stablecoin market
The ink has not yet dried on the new American GENIUS law, but its effects are already beginning to show in the cryptocurrency sector. In just seven days, the market added nearly $4 billion, raising the total market capitalization
for stablecoins to over $264 billion, igniting companies' interest in investing in this field.
This jump is not surprising, as the pioneering legislation provides a clear federal framework for banks, asset managers, and institutional investors to issue stablecoins backed by fiat currencies, without fear of enforcement actions from the U.S. Securities and Exchange Commission (SEC).
With regulatory clarity, new capital and new players emerge, and competition heats up. Signs of this shift began to appear even before the GENIUS law came into effect. In an interview with Yahoo Finance last May, Coinbase CEO Brian Armstrong was asked if he was worried about banks entering the stablecoin market, to which he responded: 'No. I think everyone has the right to issue their own stablecoins.'
It seems that the traditional financial sector agrees, as the focus now shifts to the design of stablecoins and the institutions behind them.
