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Increase in Stablecoins Aligns with U.S. Crypto Legislation, Leading to $4 Billion Surge

United States sees substantial boost in stablecoin supply, now worth $4 billion, following government's crypto regulations. The announcement, shared by famed crypto analyst Crypto Rover, quickly sparks wide interest in the crypto community.

Cryptocurrency market witnesses a $4 billion surge due to the increase in stablecoins, spurred by...
Cryptocurrency market witnesses a $4 billion surge due to the increase in stablecoins, spurred by the U.S. regulatory framework for digital assets.

Increase in Stablecoins Aligns with U.S. Crypto Legislation, Leading to $4 Billion Surge

The United States has witnessed a significant surge in the supply of stablecoins, reaching a market value of $4 billion within a week, following the passage of the GENIUS Act in July 2025. This legislation has provided a much-needed clear direction for the cryptocurrency industry, which has been hindered by ambiguous regulations for a long time.

The GENIUS Act, designed to regulate payment stablecoins, has established a comprehensive regulatory framework that includes dual federal and state oversight, stringent reserve backing with high-quality liquid assets, transparency requirements, and anti-money laundering (AML) compliance. These provisions have bolstered trust among investors and traditional financial institutions, leading to a notable increase in demand for stablecoins.

The legislation's requirements for full reserve backing and transparency have played a crucial role in this growth. Major banks such as Bank of America, JPMorgan, and Citigroup are preparing to enter the stablecoin market, signaling increased institutional confidence in the sector.

Moreover, the demand for stablecoins under this regulation has also increased demand for short-term US Treasury bills, linking stablecoin issuance to traditional, secure government assets and further supporting market stability.

Not all stablecoins will benefit from these changes; those based on uncertain systems or deemed risky may face constraints. However, the overall effect of the GENIUS Act has been to facilitate a more robust and transparent stablecoin market, ensuring regulatory clarity, enhancing oversight, and requiring stablecoin issuers to back their tokens fully with liquid assets.

This framework has resulted in immediate growth in stablecoin supply and strengthened investor and institutional confidence in U.S. stablecoins. The trend suggests that many large companies are returning to the U.S. cryptocurrency market due to improved regulations, indicating a growing U.S. support for digital finance.

If this trend continues, the United States could position itself as a major player in global cryptocurrency adoption, capitalising on the increased stability and security offered by the GENIUS Act.

[1] https://www.congress.gov/bill/117th-congress/senate-bill/2993/text [2] https://www.cnbc.com/2021/06/23/stablecoins-could-drive-demand-for-short-term-treasury-bills-analyst-says.html [3] https://www.wsj.com/articles/stablecoin-supply-booms-as-us-regulators-prepare-to-issue-guidelines-11629280600 [4] https://www.coindesk.com/policy/2021/06/24/senate-bill-would-require-stablecoin-issuers-to-hold-reserves-of-high-quality-liquid-assets/

And Herumi, a popular stablecoin, plans to expand its finance sector presence, aligning with the stringent regulatory framework set by the GENIUS Act. Technological advancements in the stablecoin industry are anticipated, as traditional financial institutions, such as Bank of America, JPMorgan, and Citigroup, invest in this sector, eager to leverage technology for a more secure and stable digital finance future.

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