On July 18, 2025, U.S. cryptocurrency firms experienced a notable stock rally after the House of Representatives passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking a significant step toward regulatory clarity for the sector.
Investors responded positively, with major crypto-related companies enjoying share gains. Coinbase and Robinhood stock prices rose by approximately 2–3%, driven by optimism that this legislation would reduce regulatory uncertainty and inspire further institutional participation. Meanwhile, Bitcoin traded near $118,000, with intermittent spikes up to $123,000 earlier in the week. This movement boosted the total market value of all digital assets to approximately $4 trillion, a remarkable rebound from the low of around $800 billion following the 2022 FTX collapse.
Analysts observe that instituting a formal framework for stablecoins—a category representing more than 60% of crypto transaction volume—is instrumental in unlocking institutional dollars that have been largely sidelined.
Initially introduced by Senator Bill Hagerty (R–TN) in May, the bipartisan GENIUS Act passed the Senate on June 17 by a 68–30 margin. It establishes the first comprehensive federal-level stablecoin rules. Issuers must maintain a 1:1 reserve ratio in cash or high-quality liquid assets. Monthly reserve disclosures and annual audits will be mandatory to ensure transparency. The bill includes consumer safeguards, such as repayment priority in bankruptcy scenarios, and sets anti-money laundering (AML) and Know Your Customer (KYC) requirements. A dual licensing structure allows issuers under $10 billion to opt into state regimes comparable to federal rules.
Unlike the Senate version’s passage, the House adopted its own version on July 17 with stronger Republican alignment, advancing also two related bills: the CLARITY Act, which defines digital-asset oversight, and the Anti-CBDC Surveillance State Act, which aims to prevent the creation of a central bank digital currency. These bills now require Senate review.
Supporters hail this legislation as a turning point. Proponents such as Christian Catalini of MIT highlight that this sets the stage for these assets to go mainstream. Financial institutions like JPMorgan, Citigroup, and Bank of America have already signaled readiness to issue stablecoins once the regulatory groundwork is solidified.
Yet critics remain wary. Senator Elizabeth Warren criticized the Act for leaving insufficient safeguards and potentially empowering a few large stablecoin issuers, warning it “lacks the basic safeguards necessary to ensure that stablecoins don’t blow up our entire financial system.” The Independent Community Bankers Association has expressed concern about hidden regulatory loopholes. Consumer Reports also argued the legislation fails to offer ample protection and could permit Big Tech firms to engage in banking activities without equivalent supervision.
The GENIUS Act’s evolution underscores a year of concerted “Crypto Week” legislative activity in Washington. In addition to stablecoin oversight, this surge included bills defining digital-asset market structure and preventing creation of a Federal Reserve digital currency.
The Act is aligned with former President Trump’s crypto-forward agenda, culminating in a White House bill-signing ceremony on July 18, complete with appearances from the CEOs of Coinbase, Kraken, Robinhood, Gemini’s Winklevoss twins, and other stakeholders. Financial experts echo that although this increases transparency, it also potentially enhances government surveillance.
On the same day, Trump signed the GENIUS Act into law—a key milestone for stablecoin regulation—though at the time of the House passage on July 18, it was still awaiting the president’s signature.
With House passage confirmed, the Act heads to the Senate for concurrence on the version adopted by the House, which included additional language from the CLARITY and Anti-CBDC bills. Should the Senate approve the revised bills, the consolidated legislation would return to the president for signing—an event expected before Congress adjourns for the August recess.
Assuming enactment, stablecoin issuers would soon face a new operational environment with requirements for substantial reserves, audits, licensing, and compliance protocols. The anticipated effects include increased institutional and consumer trust, potential Treasury demand to support reserves, and renewed competition between digital-native companies and legacy financial institutions.
The GENIUS Act signals a pivotal shift in U.S. cryptocurrency legislation, carving out a structured environment for stablecoins and igniting investor enthusiasm reflected in major stock gains and a resurgent digital asset market. With the bill advancing through the Senate, all eyes now track its final legislative journey—and how it positions the U.S. at the forefront of crypto regulation. The next few weeks are critical: enactment before recess could cement this momentum.
