GENIUS Act Boosts Bitcoin: What the Stablecoin Bill Means for Crypto Market

A wave of excitement swept through crypto markets as the U.S. House moved forward with the GENIUS Act, legislation aimed at creating a clear regulatory framework for stablecoins.

After an initial hiccup on a procedural vote, backing from President Trump rallied support. As a result, Bitcoin and Ethereum surged, and crypto-related stocks jumped.

Here’s a detailed look at what happened, why it matters, and what both traders and investors should know.

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Key Takeaways

1. House honors the GENIUS Act: The U.S. House advanced the bill after Republicans rallied, following Trump’s intervention.

2. Crypto markets rallied hard: Bitcoin climbed ~2%, Ethereum surged ~8%, while stocks like Circle and Coinbase rose over 10%.

3. Stablecoin clarity could reshape the market: Required reserves, transparency rules, and issuer safeguards may trigger institutional adoption.

What Exactly Is the GENIUS Act?

The GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, has already passed the Senate with a strong bipartisan vote (68-30).

The act would create the first federal rules for stablecoins, requiring full backing in cash or U.S. Treasuries, monthly audits, and clear issuer licensing.

It aims to balance innovation with security. Companies that issue stablecoins would need federal or state approval, and compliance requirements would align with bank-like standards.

Crucially, it prevents stablecoins from being classified as securities and establishes dual oversight, mainly under the OCC, with safeguards against overlap.

This bill arrived amid a flurry of crypto-friendly proposals, like the CLARITY Act (defining digital asset classification) and the Anti‑CBDC Surveillance State Act (barring a central bank digital currency).

Together, these bills, collectively labeled “Crypto Week,” represent perhaps the most significant legislative push for crypto clarity to date.

Read Also: What is GENIUS Act? Here’s Everything You Need to Know

Market Reaction: Bitcoin, Ethereum & Crypto Stocks Surge

Following a rocky start, the GENIUS Act gained momentum. After a procedural vote failed, delayed by 13 Republicans, the tide turned. Trump tweeted he secured backing from key holdouts, prompting the next vote.

Crypto markets responded instantly. Bitcoin rose about 2-3%, hovering around $119,000 to $120,000. Ethereum climbed even more, reaching $3,176-$3,288, about an 8% surge. Stablecoin-linked firms gained major ground: Circle jumped ~14-17%, Coinbase rose ~4-10%.

Industry analysts view this as more than hype. With clear rules, institutional capital may flow into digital assets. Spot Bitcoin ETFs have seen over $2.7 billion net inflows this week, possibly driven by regulatory optimism.

If passed, the GENIUS Act could lay the foundation for mainstream adoption, stablecoin usage in payments, and bank participation in crypto.

Read Also: Is the Genius Act Cancelled?

What Comes Next for the Bill and Crypto Markets

As the GENIUS Act moves closer to becoming law, both crypto investors and policymakers are watching the next steps closely.

The bill’s journey is far from over, and the coming weeks will be crucial in shaping how stablecoins are regulated across the United States.

While the early market reaction has been optimistic, much depends on how the final language of the law is negotiated and how quickly it’s implemented.

This phase will determine whether the crypto industry can fully embrace the regulatory clarity it has long demanded or if further debates and delays are ahead.

Final House Vote

The act is expected to be brought forward swiftly after procedural advances. House Speaker Mike Johnson and Trump have signaled urgency.

Senate Reconciliation and Presidential Approval

After House passage, the bill would be reconciled with the STABLE Act and sent to President Trump for signing.

Institutional Flow and Market Structure

With clear stablecoin rules and asset definitions in place, Wall Street banks like BofA, Morgan Stanley, Citi, and JPMorgan are already eyeing or developing stablecoin projects.

This might trigger renewed interest from institutional and retail investors and possibly elevate BTC toward $150K projections 

Continued Debate

Critics like Senator Warren warn of regulatory loopholes and systemic risk. Some DeFi advocates argue the rules favor existing banks over decentralized innovation. This suggests possible amendments during Senate-House talks.

Once implemented, the GENIUS Act could redefine crypto’s legal landscape, potentially spurring new stablecoin networks, payment platforms, and ETF expansion.

Read Also: The GENIUS Act in Congress: What It Means for the Future of Crypto Regulation and Stablecoins

Conclusion

The GENIUS Act marks a turning point for crypto regulation in the U.S. Its passage would signal seriousness about stablecoin governance, transparency, and issuer accountability, boosting institutional confidence and potentially raising crypto prices.

Markets have already responded, with Bitcoin and Ethereum leading gains and crypto equities rallying.

If you’re trading or investing in crypto right now, staying updated on legislative developments is critical. Real‑time tools matter. Platforms like Bitrue offer live pricing, clear charts, and automated trading tools.

Whether you’re watching BTC, ETH, or stablecoin dynamics, Bitrue delivers fast and secure access so you can act confidently, even as policy shakes the market.

FAQ

What is the GENIUS Act?

It’s a federal stablecoin regulatory bill requiring full reserves, audits, and clear issuer licensing. It passed the Senate and is advancing in the House.

How has the crypto market reacted?

Bitcoin jumped around 2-3%, Ethereum rose ~8%, and stocks like Circle and Coinbase surged 10-17% following the GENIUS Act’s progress.

Why does this matter for stablecoins?

It sets the first national framework, including issuer qualification, audit requirements, and reserve standards, making stablecoins safer and more reliable.

What are the risks or criticisms?

Some worry rules benefit big banks over DeFi projects, while others fear the potential for regulatory gaps or systemic crypto banking risks.

Should I trade based on this news?

If you’re active in crypto markets, following legislative updates is wise. Use reliable platforms like Bitrue, monitor price trends, and manage risk with alerts and smart order types.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.