The approval of a U.S. stablecoin bill could mark one of the most significant regulatory milestones in crypto history, according to a report from asset manager Bitwise.
Bitwise highlighted that progress on stablecoin legislation in the U.S. may spark a multi-year bull market for cryptocurrencies. On Monday, the Senate moved to advance the GENIUS Act to a final vote, potentially making this summer the moment the U.S. passes its first major crypto law.
“Besides the January 2024 approval of spot Bitcoin ETFs, this could be the most impactful regulatory event in crypto’s history — perhaps even more so,” said Matt Hougan, Bitwise’s Chief Investment Officer.
Stablecoins are digital assets pegged to real-world assets like the U.S. dollar or gold, playing a crucial role in the crypto ecosystem and international money transfers.
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) proposes federal oversight of stablecoins with market capitalizations exceeding $10 billion. It also allows for state regulation, provided it aligns with federal standards. This contrasts with the House’s STABLE Act, which calls solely for state regulation without federal coordination.
Bitwise pointed out that while stablecoin issuers currently face various rules, there is no unified federal regulatory framework — a gap the GENIUS Act aims to fill.
If passed, the bill could trigger a broad crypto rally beyond just Bitcoin (BTC), with assets like Ethereum (ETH), Solana (SOL), and decentralized finance (DeFi) tokens such as Uniswap (UNI) and Aave (AAVE) poised to benefit the most.
The report also forecasts rapid growth in the stablecoin market, potentially expanding from $245 billion today to $2.5 trillion in the near future.
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