The U.S. Senate recently approved the GENIUS Act, creating a regulatory framework for stablecoins pegged to the U.S. dollar.
Impact of Stablecoin Regulations on Cryptocurrencies
With the introduction of the regulation, cryptocurrency investors are re-evaluating their strategies to capitalize on this rapidly growing sector. Analysts from the Paul Barron Network suggest that investors will focus on cryptocurrencies linked to payment infrastructures and the stablecoin ecosystem. This strategy emphasizes the significance of networks like Ethereum (ETH), where most stablecoin transactions and decentralized finance (DeFi) activities occur.
Model Cryptocurrency Portfolio Suggested by Experts
The analysts from the Paul Barron Network recommend allocating 50% of the portfolio to Ethereum (ETH) due to its dominant role in stablecoin transactions and DeFi. Solana (SOL) holds a 25% allocation thanks to its rapid adoption on individual payment platforms. Ripple's XRP accounts for 10% due to its potential use in banking and retail transactions. Layer-2 solutions providing scalable and low-cost stablecoin payment infrastructure, such as Optimism (OP), Arbitrum (ARB), and Polygon (POL), collectively constitute about 9%, while Stellar (XLM) is given 2.5%, benefiting from PayPal-supported integrations for cross-border transfers.
Prospects of Implementing the GENIUS Act
The passage of the GENIUS Act through the Senate may lead to increased interest from investors in crypto projects focused on enhancing payment market returns. As regulated stablecoins approach mainstream acceptance, there is already potential for significant growth in crypto portfolios centered around this sector. The final approval process and the implementation details of the law hold significant interest for the crypto market and its investors.
The approval of the GENIUS Act creates a new regulatory foundation for stablecoins, opening new avenues for investors and crypto projects. It is expected that changes in legislation will shape approaches to cryptocurrency portfolios, emphasizing stability and payment systems.
