Recent U.S. legislation has significantly impacted Ethereum's price and the cryptocurrency market as a whole.
U.S. Declares Stablecoins as Digital Cash Under New Law
President Donald Trump recently signed the GENIUS Act, which establishes a federal framework for regulating stablecoins. Under the law, all stablecoins must be fully backed by cash or highly liquid assets. It also requires issuers with a market capitalization of over $50 billion to undergo annual audits. The new law establishes specific guidelines for foreign companies operating in the U.S.
Ethereum Grows as Stablecoins and Big Investors Boost Demand
Analysts at Bernstein noted that the GENIUS Act is helping to push stablecoins into the mainstream, which in turn increases demand for Ethereum. Ethereum’s price has increased by about 25%, and at the time of writing, it was trading at $3,824, up 2.68% in the last 24 hours. Investment firms like BlackRock are beginning to increase their holdings of ETH in their portfolios, while some new businesses are now holding ETH as part of their company funds.
NFT Market Rebounds Alongside ETH ETF
Ethereum is also reviving the NFT market, as the global NFT market cap rose to $6.04 billion, a 16.9% increase in just 24 hours. Interest in Ethereum ETFs is growing as well, with Ethereum ETFs recording a historic $726.74 million in net inflows in a single day. Bernstein analysts suggest that this is not just another hype-driven crypto rally but a 'blockchain financial services cycle' fueled by real-world adoption and legal clarity.
The recent rise of Ethereum and other assets amid new U.S. legislation suggests potential changes in the structure of financial services, opening new opportunities for cryptocurrencies and blockchain technology.
