Shares of crypto-linked companies soared after President Donald Trump signed the GENIUS Act into law. This bill, which regulates stablecoins in the U.S., marks a significant milestone for the cryptocurrency industry. The new law has had an immediate impact, with ether prices reaching new heights for 2023. Let’s explore the effects of the law and how it’s influencing the market.
The GENIUS Act and Its Impact on Crypto Markets
On July 21, crypto markets experienced a surge as ether prices hit their highest point this year. President Trump signed the GENIUS Act on Friday, signaling a victory for the crypto sector. The bill has been in the works for some time, as the crypto industry has long lobbied for a clear regulatory framework. The law passed the House of Representatives with a vote of 308-122 after Senate approval.
The signing of the bill has sparked optimism in the market, with traders now more confident about the future of stablecoins. This bill regulates stablecoins, aiming to bring more stability and trust to this growing asset class. Bitcoin, the world’s largest cryptocurrency, saw a slight increase of 0.4%. However, it remains over 3% away from its all-time high of $123,153, reached last week.
Ether Prices Surge After the Stablecoin Law
The GENIUS Act has introduced regulations that specifically address regulated stablecoins. The bill prohibits yields or interest payments on these stablecoins. As a result, investors have started moving into ether, the second-largest cryptocurrency, which is expected to benefit from this shift. According to Deutsche Bank, investors are flocking to ether as a viable alternative for yield generation in decentralized finance (DeFi).
“It’s a long-awaited moment for Ethereum,” said Luke Nolan, Senior Research Associate at CoinShares. “While it’s still early to predict long-term trends, the confluence of factors seems to be in Ethereum’s favor.”
At the time of writing, ether was trading at $3,795.4, marking its highest level for the year. Investors are now turning their attention to ether as a stable and profitable asset within the evolving regulatory landscape.
Crypto-Linked Stocks See Significant Gains
The crypto market has always been volatile, but the signing of the GENIUS Act brought an influx of positive sentiment. Crypto-linked stocks saw impressive gains on Monday, with many companies reporting growth in their stock values.
Coinbase Global (COIN.O) and Circle Internet (CRCL.N), both major players in the crypto industry, saw modest increases of 0.1% early on in trading. These companies, along with many others, are benefiting from the clarity provided by the new stablecoin law.
Stablecoins, designed to maintain a stable value (typically 1:1 with the U.S. dollar), are gaining widespread adoption. They are mainly used by crypto traders for transferring funds between various tokens. Big financial institutions, such as Bank of America, have even started developing their own stablecoins.
Rising Crypto Companies and Bitcoin Holdings
Shares of companies involved in cryptocurrency ventures also saw an uptick. BitMine (BMNR.A), where tech mogul Peter Thiel is the top investor, advanced by 2.7%. Other companies like Bit Digital (BTBT.O), BTCS (BTCS.O), and SharpLink Gaming (SBET.O) climbed between 2.3% and 8%. These companies are making big moves in the crypto space, adding more value to their portfolios with Bitcoin and ether holdings.
Additionally, companies like GameStop (GME.N) have been rapidly adding crypto assets to their balance sheets. Following the path of MicroStrategy (MSTR.O), GameStop’s stock has seen a notable increase. MicroStrategy, which holds the most Bitcoin among corporate entities, has seen its stock price rise by nearly 3,000% since 2020. On Monday, shares of MicroStrategy gained 1.7%.
Dynamix Corporation (DYNX.O), a blank-check company, surged 26.2% after announcing a merger with Ether Reserve, a new crypto venture backed by prominent investors. This merger will form The Ether Machine, further driving investor interest in both ether and the growing crypto market.
Other Cryptocurrencies and Market Growth
Other cryptocurrencies also saw a positive shift in their market values. Solana reached its highest point since February. The ProShares Ultra Solana ETF (SLON.P) jumped 17.2% as investor interest in Solana increased. Additionally, XRP gained 1%, trading close to its all-time highs.
Overall, the broader cryptocurrency market has seen impressive growth, with the market capitalization hitting $4 trillion on Friday, according to CoinGecko data. This surge signals the growing influence of crypto-assets, especially with the newly signed stablecoin law offering greater regulatory clarity and investor confidence.
Conclusion: A Bright Future for Crypto and Stablecoins
The signing of the GENIUS Act marks a monumental step for the crypto industry. With Trump’s stablecoin law now in effect, crypto-linked stocks and ether prices are climbing. The market is reacting positively, and this new regulatory framework is setting the stage for further growth and innovation.
As more investors move towards ether and stablecoins, companies like Coinbase, Circle, and BitMine are benefiting from the increased clarity around stablecoin regulations. This shift also signals the continued mainstream adoption of cryptocurrencies, as both individual investors and institutions seek out stable, regulated assets.
The future of the crypto market looks bright, and as new regulations and technologies evolve, we can expect even more growth. With the signing of the GENIUS Act, stablecoins are now on a solid path toward greater legitimacy, and the broader crypto market stands to benefit greatly.