The approval of a U.S. stablecoin bill could mark a pivotal turning point for the cryptocurrency industry, potentially sparking a sustained bull market, according to a report by Bitwise.
With the Senate moving the GENIUS Act closer to a final vote, the U.S. stands on the verge of enacting its first federal crypto legislation this summer. Bitwise highlights this development as one of the most significant regulatory milestones since the approval of spot Bitcoin ETFs earlier this year.
Matt Hougan, Bitwise’s Chief Investment Officer, described the bill’s progress as possibly “the most consequential regulatory event in crypto’s history.”
Stablecoins—digital tokens pegged to assets like the U.S. dollar or gold—are fundamental to the crypto ecosystem and play a crucial role in enabling seamless cross-border payments.
The GENIUS Act proposes federal oversight for stablecoins with market capitalizations exceeding $10 billion, while also allowing states to regulate these assets within federally aligned rules. This contrasts with the House’s STABLE Act, which advocates for state regulation without federal coordination.
Bitwise emphasizes the absence of a comprehensive federal framework for stablecoins today and sees the GENIUS Act as a solution that could provide clarity and stability.
If passed, the legislation could trigger a broad-based rally in crypto assets beyond Bitcoin (BTC), with Ethereum (ETH), Solana (SOL), and decentralized finance tokens like Uniswap (UNI) and Aave (AAVE) poised to benefit the most.
According to Bitwise’s projections, the stablecoin market, currently valued at $245 billion, could surge to $2.5 trillion in the near future.
