2 days ago
House's Passage Of The GENIUS Act A ‘Landmark Moment For Crypto'
The house's approval of the GENIUS Act has major implications for the crypto space. (Photo ... More Illustration)
The U.S. House of Representatives' approval of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) is 'a landmark moment for crypto" and stablecoins in particular, according to analyst George Kailas.
'One of the key overhangs for the industry has always been regulatory uncertainty. This vote sends a strong message: U.S. policymakers are ready to embrace structured innovation in digital assets rather than ignore or suppress it," Kailas, CEO of said via email.
'Even before the final passage, we've seen major institutions—like America's largest banks, Amazon, and Walmart—starting to reference stablecoins on earnings calls. That signals a major shift in corporate perception and planning," he added.
Going forward, Kailas emphasized how this development could create significant momentum in the crypto markets.
'Looking ahead, I believe we'll see a meaningful momentum cycle driven by both institutional and retail interest. For many retail investors, lack of regulatory clarity has been a psychological hurdle,' he noted.
'With that being addressed, we'll likely see retail inflows increase—followed by institutions anticipating and buying ahead of those flows. Which in turn would only make it even more interesting for retail," said Kailas.
"This feedback loop has become common in high-momentum stocks like CoreWeave or Circle.'
Tim Enneking, managing partner of Psalion, also stressed the significance of this legislative milestone.
'By any definition, this is a watershed moment in the history of digital assets. The United States is still – and by far – the largest economy and, by an even greater margin, the largest source of risk capital in the world,' he stated via email.
'This 'new day' will light the digital assets ecosystem on fire!' said Enneking.
'It would be difficult to overstate the importance of the fact that the US has now (finally) passed crypto legislation (with two other bills almost certain to follow). Even though the GENIUS Act focuses solely on stable coins, that focus is quite secondary,' he stated.
'The legitimization that the US government has now granted to the digital asset space far outweighs the specifics of this, or any other, act for the immediate future.'
He went on to say that the digital currency space has entered a new era, stating that 'Even though almost everyone saw this coming since the results of the US federal election last November, hope is now a fact and the digital asset world now faces a new dawn!'
Crypto's Continued Evolution
Tom Bruni, editor-in-chief & VP of community at Stocktwits, spoke to how the passage of the GENIUS Act will enable the continued evolution of the crypto space.
'There's a clear understanding that a regulated Stablecoin market is needed to facilitate the next phase of the crypto industry's growth by offering a reliable medium of exchange and store of value. This will support the overall ecosystem by enabling transactions, cross-border payments, and decentralized finance (DeFi) applications, such as lending and borrowing,' he stated through email.
'There's still a significant amount of work to be done on the regulatory side in the U.S. and globally, but this week's actions have helped keep things moving in the right direction,' said Bruni.
'The strong flows into crypto and recent price action suggest investors are focused on the 'big picture' and remain positive that the Anti-CBDC and CLARITY bills will eventually pass in some form, and that the broader 'send of September' timeline that David Sacks has set out for comprehensive crypto industry rules will be met,' he stated.
'Bitcoin is trading at all-time highs, and July's aggressive flows into Ethereum and other altcoins suggest that retail investors and traders' optimism continues. These factors also suggest that risk appetite is currently strong and that retail investors and traders are betting on the momentum to persist,' noted Bruni.
'Stocktwits Sentiment and Message Volumes for Bitcoin, Ethereum, and many other cryptocurrency and cryptocurrency-related stocks are firmly in 'Extremely Bullish/High' territory,' he concluded.
Implications For Treasuries
Greg Magadini, director of derivatives for digital asset data provider Amberdata, spoke to the impact that the passage of the GENIUS Act could have on U.S. Treasuries, a matter that has generated significant visibility in recent months.
'One of the main elements of the Genius act is the requirement for stablecoins to be backed 1to1 by highly liquid reserves (think US Treasury bills),' he emphasized.
'This creates an implicit partnership with the US government as Trump currently wants to finance the US government through short-term T-bills in order to refinance at lower rates," said Magadini.
'Adoption of stablecoins will not only create new buyers of US short-term debt, but it will also help cement the US dollar as the blockchain reserve currency,' he added.
'The current use cases for stablecoins involve DeFi Dex trading, smart-contract dApps and simple payments. In order to help grow adoption of USDC (and the like) the US government is now incentivized to continue to support the next waves of blockchain innovation... such as RWAs and tokenized stocks.'
