Crypto Stocks Surge as Trump Signs Landmark Stablecoin Legislation

On July 21, 2025, shares of crypto-linked companies soared following the signing of the GENIUS Act by President Donald Trump, a pivotal piece of legislation that establishes a regulatory framework for stablecoins in the United States. The bill, which passed the House of Representatives with a strong bipartisan vote of 308 to 122 on July 18, after earlier Senate approval, marks a significant victory for the cryptocurrency industry, which has long advocated for clearer regulations to bolster its legitimacy.

 

The GENIUS Act, officially titled the "Guiding and Establishing National Innovation for U.S. Stablecoins," introduces federal guardrails for dollar-pegged cryptocurrencies, ensuring they are backed by liquid assets such as U.S. dollars and short-term Treasury bills. Issuers are required to disclose the composition of their reserves monthly, a move designed to enhance transparency and consumer confidence. This regulatory clarity is expected to pave the way for broader adoption of stablecoins, which maintain a constant value, typically pegged 1:1 to the U.S. dollar, and are widely used by crypto traders to move funds between tokens.

 

The market response was immediate, with ether prices climbing to their highest level of the year, last trading at $3,816.7 after hitting a peak on July 20. This surge is attributed to the bill’s ban on yields or interest payments for regulated stablecoins, prompting investors to shift toward ether, the world’s second-largest cryptocurrency, as an alternative for yield generation in decentralized finance (DeFi). Deutsche Bank noted that this shift is driving demand for ether, which is used to pay transaction fees on the Ethereum blockchain, where most stablecoins are issued and transacted.

 

The legislation is seen as a transformative step for the crypto industry, which invested heavily—over $245 million in the 2024 elections—to support pro-crypto candidates, including Trump. The GENIUS Act is expected to encourage traditional financial institutions and retailers to enter the stablecoin market. Major Wall Street banks like Bank of America (BAC.N) and JPMorgan Chase (JPM) have already signaled interest in issuing their own stablecoins, with JPMorgan planning a deposit token (JPMD) for institutional clients. Retail giants like Walmart and Amazon have also explored stablecoin offerings, indicating the potential for widespread integration into mainstream finance.

 

Treasury Secretary Scott Bessent highlighted the law’s potential to strengthen the U.S. dollar’s status as the global reserve currency, expand access to the dollar economy, and increase demand for U.S. Treasuries, which back stablecoins. Analysts estimate the stablecoin market, currently valued at $260 billion, could grow to $2 trillion by 2028, further driving demand for short-term Treasury securities.

How the GENIUS Act Benefits StableHodl

 

For StableHodl, a yield generating platform, the GENIUS Act provides a robust framework that could significantly enhance its operations and market position. The regulatory clarity offered by the law reduces legal uncertainties, making it easier for StableHodl to attract institutional and retail investors seeking exposure to stablecoins. The requirement for stablecoins to be backed by liquid assets ensures greater stability and trust, aligning with StableHODL’s mission to offer secure, dollar-pegged investment opportunities.

 

The ban on yields for regulated stablecoins may shift investor interest toward platforms like StableHodl, which could offer innovative DeFi strategies leveraging ether or other cryptocurrencies to generate returns. As stablecoin adoption grows—potentially fueled by new entrants like banks and retailers—StableHODL could see increased demand for its services, such as stablecoin portfolio management or yield-generating products built on Ethereum-based protocols. Additionally, the anticipated surge in Treasury demand could lower borrowing costs for StableHodl if it holds or invests in short-term government debt to back its offerings.

 

In conclusion, the GENIUS Act positions StableHodl to capitalize on a more legitimate and rapidly expanding stablecoin market, fostering investor confidence and opening new avenues for growth in a crypto industry increasingly integrated with traditional finance.