Crypto Legislation 2025: What the GENIUS Act Means for the Market and the Environment

This week, the crypto world turned its eyes to Washington. After a sudden halt on Tuesday, the U.S. House of Representatives moved forward on a set of major cryptocurrency bills, most notably the GENIUS Act.

The procedural green light sent Bitcoin and Ethereum prices soaring. But the bigger picture is more than just market movement.

This legislation could shape how stablecoins work, how crypto firms operate, and how much energy the industry consumes. Let’s unpack what’s happening and why it matters for investors, companies, and the climate.

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Key Takeaways

1. The U.S. House approved a vote to move forward on crypto bills, including the GENIUS Act, giving Bitcoin and Ethereum a boost.

2. The GENIUS Act limits stablecoin interest payments, reinforcing Ethereum’s role while raising questions about environmental impact.

3. Environmentalists warn of higher energy use unless regulators push for proof-of-stake over mining as the default verification method.

What Is the GENIUS Act and Why Does It Matter?

The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act for short, is a bipartisan bill focused on regulating stablecoins.

These are digital currencies pegged to fiat assets like the U.S. dollar, making them less volatile than Bitcoin or Ethereum.

The bill already passed the Senate in June and now awaits a final vote in the House after clearing a procedural step on Wednesday.

At the core, the GENIUS Act would restrict stablecoin issuers from offering interest payments to users. While that may sound like a technical detail, it has big implications.

This change could limit how companies like Circle, the issuer of USDC, attract users. However, it also strengthens Ethereum’s position in the ecosystem.

Since most stablecoins are built on Ethereum’s network, limiting competition from interest-earning stablecoins could increase its long-term relevance.

The bill has become a symbol of how U.S. lawmakers are trying to catch up with crypto’s growth.

Supporters argue it will bring structure and legitimacy to a market that’s still seen by many as unpredictable.

Critics say it could tighten the rules too much, possibly pushing innovation away from U.S. borders.

President Trump, who has expressed strong support for crypto and even holds over $1 billion in digital assets, helped persuade House Republicans to support the bill after some initial resistance. The mood shifted quickly, leading to Wednesday’s market rebound.

Analysts expect that the GENIUS Act and other bills like the CLARITY Act will pass sooner or later. Whether bundled together or not, investors are already pricing in the likelihood of a regulated future.

Read Also: Crypto Bills Stalled: GENIUS Act Vote Fails, What’s Next?

How the Crypto Market Reacted to the Legislation News

The market responded fast and strong. Bitcoin climbed 2% to around $119,000, while Ethereum surged more than 10% to cross $3,380.

These price jumps weren’t just random; they were closely tied to the House’s decision to push forward with crypto regulation.

Some crypto-related stocks made even bigger moves. Circle’s shares jumped 19% after a sharp dip the day before.

Coinbase also saw a modest recovery of around 2%. Ether treasury stocks, which include companies holding significant amounts of Ethereum on their balance sheets, had a banner day.

BitMine rallied 12%, and at one point surged 29% after Peter Thiel revealed an investment in the company. Others like SharpLink and Bit Digital saw similar double-digit gains.

Behind the scenes, institutional capital also poured in. Bitcoin ETFs took in over $400 million in new investments, while Ethereum funds attracted nearly $200 million.

That level of activity suggests that investors are betting big on a future where crypto is more deeply integrated into the regulated financial system.

But not all the signals are positive. Ethereum’s rally, while impressive, is not fully backed by fundamentals. Network usage and transaction fees remain relatively flat.

That’s led some analysts to call this momentum speculative, driven by hopes of a regulatory breakthrough rather than solid demand.

Still, with legislation moving again and political backing from both parties, market optimism seems to have legs, at least for now.

Read Also: Is the Crypto Bill Supported by Trump Getting Rejected?

Environmental Concerns Around the GENIUS Act

While the GENIUS Act might offer clarity for investors, it leaves environmentalists deeply concerned. That’s because the bill doesn’t include any language restricting crypto mining, the energy-intensive process behind many cryptocurrencies like Bitcoin.

Mining involves solving complex algorithms using massive computing power. Each successful solution generates new coins, but the process eats up a ton of electricity.

In fact, crypto mining used up 2.3% of all U.S. electricity in 2022, according to federal data. And that number is only expected to grow as crypto adoption increases.

Most stablecoins can be minted using either mining (proof of work) or a more eco-friendly method called proof of stake.

Proof of stake doesn’t rely on constant computing, it uses validators who lock up their crypto to verify transactions, cutting down energy use by over 99%. Ethereum made the switch to this method back in 2022.

Despite this alternative, the GENIUS Act doesn’t specify which method new stablecoins must use. That’s a red flag for climate advocates. If new coins are verified through mining, energy demand could surge even more.

Critics argue this is a missed opportunity. Researchers like Adi Wolfson believe the government could nudge the industry toward sustainable practices by requiring or at least encouraging proof of stake.

Without those guardrails, mining-heavy stablecoins may become the norm, leading to greater environmental strain.

Local communities, especially in states like Texas, where mining facilities are concentrated, are already pushing back. Complaints range from noise pollution to water use to lack of oversight. And yet, the current legislation doesn’t address any of those local concerns directly.

Read Also: The CLARITY Act: A Critical Look at Crypto Regulation in Congress

Conclusion: What This Means for Crypto Users

The GENIUS Act and its companion bills could finally bring some legal clarity to a fast-moving industry that’s long operated in a regulatory gray zone.

For crypto traders and investors, this is mostly good news. Prices are rising, and institutional interest is returning.

But the environmental impact remains a serious issue, especially if mining continues to be the default method for verifying coins.

Whether you’re holding Bitcoin, trading Ethereum, or just watching from the sidelines, it’s a good moment to stay informed. Regulation is coming, and it will shape the tools, platforms, and currencies we use.

If you’re looking for a secure and user-friendly way to manage your crypto portfolio while the laws catch up, consider Bitrue.

Bitrue offers fast transactions, low fees, and easy access to top cryptocurrencies. As the market evolves, it helps to have a platform that keeps things simple, safe, and ahead of the curve.

FAQ

What is the GENIUS Act?

The GENIUS Act is a U.S. bill aimed at regulating stablecoins by limiting interest payments and setting standards for issuers. It’s part of a broader push to regulate the crypto industry.

Why did Bitcoin and Ethereum prices go up this week?

Prices surged after the U.S. House cleared a procedural step to vote on crypto legislation. Investors see this as a sign that legal clarity is on the way.

What are the environmental concerns with crypto legislation?

The GENIUS Act doesn’t address mining’s energy use, raising concerns that stablecoin growth could drive up electricity consumption and pollution.

What is proof of stake and how is it different from mining?

Proof of stake uses validators instead of miners to verify transactions. It’s far more energy efficient than mining, which relies on constant computing power.

How can I trade crypto safely during these changes?

Using a reliable platform like Bitrue can help. It offers strong security, easy access to major cryptocurrencies, and tools to help you trade smarter.

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