Groundbreaking Legislation: The GENIUS Act Becomes Law
In a landmark move for the digital currency sector, former US President Donald Trump officially enacted the GENIUS Act, marking a significant milestone in federal cryptocurrency regulation. This pioneering legislation, having cleared both the Senate and the House of Representatives with strong bipartisan backing, establishes a thorough framework for the regulation of stablecoins pegged to the US dollar.
This law is perceived as a transformative moment for the cryptocurrency sphere, offering much-needed regulatory clarity to stablecoin issuers and strengthening the dollar’s influence within the growing digital economy. The enactment has been celebrated by industry leaders and legislators as a victory for technological progress and financial innovation. By promoting the development of stablecoins fully backed by reserves and managed off-chain, the GENIUS Act aims to create a secure and transparent entry point for both users and institutions.
Experts predict that this legislation will spur the adoption of dollar-based digital transactions and pave the way for the growth of on-chain financial systems. With regulatory approval now in place, the US cryptocurrency sector is poised for accelerated development, initially focusing on stablecoins but with the potential to expand significantly. This legislative step positions the United States as a frontrunner in the global digital finance arena.
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The Impact of the GENIUS Act on DeFi and On-Chain Expansion
Jake Chervinsky, Chief Legal Officer at Variant Fund, a renowned venture capital firm specializing in cryptocurrency, provided an insightful perspective on the implications of the GENIUS Act. While the legislation primarily targets centralized stablecoins with complete reserves off-chain, Chervinsky highlighted its indirect benefits for the decentralized finance (DeFi) sector. “The GENIUS Act is not directly about DeFi, but it significantly benefits the sector. The increase in on-chain dollars and users will drive the demand for various on-chain financial services,” he explained.
This view underscores a broader trend where regulations fostering safer and more transparent stablecoins could lead to a substantial influx of capital and participants into the crypto ecosystem. As more regulated digital dollars circulate on-chain, the infrastructure supporting lending, trading, and yield generation in DeFi is expected to expand considerably.
Chervinsky’s observation that digital payments serve as a “gateway” suggests that once users start transacting on-chain with stablecoins, transitioning to more sophisticated financial tools becomes more intuitive. As Bitcoin remains above $117,000 and Ethereum approaches the $3,500 threshold, these legal advancements are fueling an already optimistic market sentiment. The upcoming weeks could be pivotal as both BTC and ETH explore new price levels, bolstered by increasing institutional interest and a favorable policy environment in Washington.
Crypto Market Experiences Surge, Approaches Multi-Year Resistance Levels
The total cryptocurrency market cap, excluding Bitcoin (referred to as TOTAL2), has experienced a significant breakout, reaching $1.45 trillion amid strong trading volumes. This represents an 11.58% increase over the past week, bringing the market to levels not seen since early 2024. The surge confirms renewed interest in altcoins, with Ethereum leading the charge, having rallied by an impressive 131% since April.
Price dynamics on the weekly chart reveal a decisive breakout above the 50-week and 100-week moving averages ($1.13 trillion and $987 billion, respectively), with bullish momentum gathering pace. The 200-week moving average at $879 billion provided robust long-term support during the recent consolidation phase, setting the stage for this breakout.
The rally now sets its sights on the next significant resistance zone in the $1.6–$1.7 trillion range, where the market previously peaked before undergoing a sharp correction. Trading volume has surged, reinforcing the strength of the breakout and indicating potential institutional inflows.
Should TOTAL2 maintain this momentum, the altcoin market could witness a broader rotation and continued rally. However, investors should remain vigilant for potential profit-taking or retracements, especially near key resistance levels. A weekly close above $1.5 trillion would further affirm the bullish structure and open the door for new cycle highs across major altcoins.
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