The enactment of the GENIUS Act in July 2025 significantly impacted the stablecoin market, resulting in record transaction volumes. This article highlights key aspects of this development.
Impact of the GENIUS Act on Stablecoin Volumes
The GENIUS Act, signed into law on July 18, 2025, had a significant impact on stablecoin transaction volumes, reaching a record high of $1.5 trillion in July. This month saw nearly a 20% increase in transaction volumes compared to the previous month. Circle's USDC was the top performer, handling around $748 billion, while Tether's USDT and DAI also recorded significant transaction volumes.
Role of Cryptocurrency Price Rallies
The rise in Bitcoin and Ethereum prices in July also contributed to the increase in stablecoin volumes. Bitcoin surpassed $123,000 while Ethereum approached $4,000. Consequently, investors began transferring their profits into more stable assets like USDC and USDT. Economist Arjun Malik commented, 'As the crypto market grew, investors started taking profits, and stablecoins became a safe place to park their money.'
Involvement of Major Financial Companies
The GENIUS Act also transformed the approach of major financial institutions. JPMorgan and Meta have started considering the use of stablecoins for international payments. JPMorgan's team tested USDC transfers on its private network, noting that the Act provided 'clear compliance pathways.' A representative from Meta also confirmed that the company is exploring stablecoin-based remittance systems.
The GENIUS Act has significantly impacted the stablecoin market, increasing transaction volumes and attracting the attention of major financial organizations. This event may mark an important milestone in the development of digital currencies.
