July 2025 marked significant developments for the cryptocurrency market, highlighting stablecoin regulations, Bitcoin reserve declines, and an increase in the value of tokenized assets.
Regulatory Framework for Stablecoins: The GENIUS Act
On July 18, the GENIUS Act, regulating the stablecoin market, was signed into law by US President Donald Trump. This law does not allow stablecoin issuers to offer interest to their customers, a major point of contention among industry leaders like Coinbase CEO Brian Armstrong. Nevertheless, it was hailed as a significant step forward for the cryptocurrency sector.
Decline in Bitcoin Reserves on Exchanges
In July, Bitcoin reserves on exchanges decreased by 2%, continuing a trend observed since early 2025. For the first time since 2018, less than 15% of the total Bitcoin supply was on exchanges, which may lead to a supply shortage in the market. Analysts believe this could result in a 'supply shock' as existing demand for Bitcoin exceeds supply.
Growth of Tokenized Real-World Assets
The total value of tokenized real-world assets (RWAs) rose to over $25 billion in July, representing a 2.5% growth. As regulatory frameworks become clearer, the sector is expected to grow further. Tokenized stocks, for instance, increased by 15% and now total over $400 million.
July 2025 proved to be a pivotal month for the crypto market, characterized by regulatory growth and significant supply changes. These developments are anticipated to influence the future trajectory of the crypto industry.
