On July 18, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking the first major federal step into cryptocurrency regulation. Focused on stablecoins—digital tokens pegged to assets like the U.S. dollar or gold—the law sets strict rules for issuers, requiring full backing in liquid assets, public audits, and a coordinated oversight framework between state and federal regulators.
So, how could this landmark legislation move crypto prices?
- Stablecoins Surge as Confidence Grows
The GENIUS Act has already triggered a wave of market activity. According to AInvest, the stablecoin market capitalization jumped by $4 billion in just a few days. Government oversight has been interpreted as validation, unlocking fresh capital and boosting confidence across the crypto sector. - Institutional Adoption Could Push Prices Higher
With regulation in place, big banks are wasting no time. Bank of America, JPMorgan, and Citigroup have all announced plans to launch or invest in stablecoin ventures. Fidelity predicts this could accelerate mainstream adoption, driving more usage of blockchain networks and increasing the value of the cryptocurrencies that power them. - Regulation Could Also Cool the Market
Not everyone is celebrating. Critics argue the GENIUS Act undermines crypto’s decentralized ethos, making it less attractive to some investors. Fidelity also warns that while regulation reduces the risk of fraud, it can’t shield portfolios from negative sentiment. If the market views tighter oversight as stifling innovation, prices could slide.
Ultimately, the GENIUS Act cements crypto’s place in U.S. financial policy. Whether it fuels a bull run or sparks a market correction will depend on how investors—and the broader crypto ecosystem—adapt to this new era of regulation.
