The signing of the GENIUS Act on July 19, 2025, was a significant event in the regulation of stablecoins in the US. The legislation aims to enhance the legitimacy of stablecoins and impose stricter requirements on their issuers.
What is the GENIUS Act?
The GENIUS Act marks a joint appearance by stablecoin leaders Jeremy Allaire of Circle and Paolo Ardoino of Tether at a landmark event at the White House. The legislation requires that only approved US-based or registered foreign entities can issue payment stablecoins to US persons. This increases compliance demands and enhances the legitimacy of stablecoins in the market.
Market Reaction to the GENIUS Act
Positive responses to the law confirm expectations of attracting institutional capital into compliant stablecoins. As of the signing of the Act, USDC maintains a stable price of $1 with a market capitalization of $64.78 billion and a 1.68% market share. However, trading volumes have significantly dropped by 36.51% to $17.23 billion.
Prospects for USDC and Digital Asset Technologies
The newly established regulatory standards are expected to improve stability and investor trust in digital assets. Coincu researchers point out the potential of the legislation to spur technological innovations in this field. Despite the decline in trading volume, markets are predicting broader use of compliant stablecoins in the coming years.
The signing of the GENIUS Act represents an important step for stablecoin regulation in the US, establishing clear rules for issuers and potentially facilitating further integration of digital assets into the traditional financial system.
