The stablecoin market capitalization has reached a new record of $256 billion, representing a 22% increase from last year. This growth is linked to the approval of the GENIUS Act.
Approval of the GENIUS Act
The approval of the GENIUS Act in the U.S. Senate garnered a vote of 68 to 30. This legislation marks a significant step towards regulating the cryptocurrency sector, though it still must pass the House and gain the President's approval.
Plans for Launching New Stablecoins
In light of the bill's advancement, President Trump is becoming more involved in the stablecoin market. World Liberty Financial, backed by Trump, in collaboration with BitGo, has launched its own stablecoin pegged to the U.S. dollar. Meanwhile, various major corporations like Bank of America and Walmart are considering launching their own stablecoins. Despite concerns raised by some Democrats, the bill requires tech companies to obtain approvals for creating their own stablecoins.
Current State of the Crypto Market
The broader crypto market has been facing challenges, with overall market capitalization dropping nearly 2% to $3.26 trillion. Trading volumes have also decreased by 9%. Bitcoin has remained stable around the $104k mark, indicating a pause in trading activity. Nonetheless, enthusiasm in the stablecoin sector is rising, with projections suggesting the market could exceed $2 trillion by the end of 2028.
The surge in stablecoin capitalization reflects significant growth spurred by new legislation. While the overall cryptocurrency market grapples with difficulties, transformations within the stablecoin sector might create new opportunities ahead.
