The GENIUS Act: A New Era for Cryptocurrency within the US

In an unprecedented move, President Donald Trump has officially put his signature on the GENIUS Act, a landmark piece of laws that sets the stage for federal regulation of cryptocurrencies. With the Senate and House of Representatives having already given a thumbs up, this act ushers in a fresh regulatory framework for US dollar-backed stablecoins.

This recent law is a serious milestone for the crypto world, offering long-sought legal certainty for stablecoin producers and strengthening the dollar’s position within the burgeoning digital economy. Both industry insiders and politicians are celebrating this step as a victory for innovation and financial reform. The GENIUS Act is poised to spice up the event of fully reserved, off-chain stablecoins, making a secure and transparent entry point for each users and institutions.

Experts are predicting that this laws will propel the adoption of digital dollar payments and lay the groundwork for on-chain financial systems to thrive. Now that the regulatory framework is in place, the US crypto sector is predicted to see rapid growth, starting with stablecoins and potentially expanding into other areas. This is a pivotal moment as America positions itself as a frontrunner in the worldwide digital finance arena.

DeFi Poised for Growth Thanks to the GENIUS Act

Jake Chervinsky, serving because the Chief Legal Officer at Variant Fund, a number one enterprise capital firm with a deal with crypto, has shared his thoughts on the implications of the GENIUS Act. While the act doesn’t directly goal decentralized finance (DeFi), Chervinsky highlighted its potential impact on the sector. “The GENIUS Act doesn’t specifically tackle DeFi — it’s more about regulating centralized stablecoins that have full reserves off-chain,” he explained. “But it’s definitely beneficial for DeFi — the more dollars and users there are on-chain, the greater the demand for various on-chain financial services.”

This viewpoint underscores a broader trend: regulations promoting safer, more transparent stablecoins could bring a wave of capital and users to the crypto ecosystem. With more regulated digital dollars circulating on-chain, the infrastructure supporting DeFi activities like lending, trading, and yield generation is prone to expand significantly.

Chervinsky’s remark about payments being “just a gateway” suggests that when users start transacting on-chain with stablecoins, transitioning to more sophisticated financial tools becomes much easier. As Bitcoin hovers above $117,000 and Ethereum recovers to the $3,500 mark, these regulatory changes are fueling an already bullish market. The coming weeks might be decisive as each BTC and ETH test recent boundaries, driven by rising institutional interest and favorable policy shifts in Washington.

Crypto Market Hits Multi-Year Highs

The total cryptocurrency market cap, excluding Bitcoin (TOTAL2), has surged, reaching $1.45 trillion with strong trading volume. This represents an 11.58% increase over the past week, taking the market to heights not seen since early 2024. This surge highlights a resurgence of interest in altcoins, led by Ethereum, which has seen a remarkable 131% rise since April.

On the weekly chart, prices have convincingly broken above the 50-week and 100-week moving averages ($1.13T and $987B), with bullish momentum picking up pace. The 200-week moving average at $879 billion has provided strong long-term support through the recent consolidation phase, setting the stage for this breakout.

The rally is now eyeing the subsequent major resistance zone between $1.6–$1.7 trillion, where the market last peaked before a major correction. The surge in volume supports the strength of this breakout, indicating that institutional investors may be returning.

If TOTAL2 keeps up this momentum, we could see a broader rotation and rally within the altcoin market. However, investors should keep an eye fixed out for potential profit-taking or pullbacks, especially near key resistance levels. A weekly close above $1.5 trillion would further confirm the bullish trend and potentially pave the best way for brand new cycle highs across major altcoins.

Featured image from Dall-E, chart from TradingView