Bitcoin News Today: Crypto Markets Rally 10% on GENIUS Act Passage

Treasury Secretary Bessent has hailed the signing of the GENIUS Act as a “milestone achievement” for cryptocurrency regulation, marking a historic moment for the digital asset industry. The legislation, passed with bipartisan support in the US House, establishes a clear federal framework for digital assets, addressing key areas such as stablecoins, custody, and market structure.

Ian De Bode, chief strategy officer at Ondo Finance, described the bill as “the start of a new regulatory era.” He emphasized that clear regulations are essential for major financial institutions to participate in digital asset infrastructure. The lack of legal clarity has been the biggest barrier to adoption, and clearer rules are expected to lead to faster adoption. De Bode also noted the involvement of Patrick McHenry, former Chair of the House Financial Services Committee and now Vice Chair at Ondo Finance, who was present when the bill was signed by Donald Trump.

Crypto markets rallied on the news of the GENIUS Act’s passage, with major digital currencies such as Bitcoin (BTC) and Ethereum (ETH) gaining momentum. Industry leaders attribute this to the increased regulatory clarity, which shapes investor sentiment in the crypto space. Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, noted that the milestone drives broad market optimism, attributing the recent Bitcoin rally and growing interest in altcoins like XRP and DOGE to the regulatory clarity provided by the GENIUS Act. He added that investors need certainty to commit for the long term, and that certainty comes from clear, enforceable rules.

The bill is expected to change how investment firms and hedge funds deploy capital. Obtaining prescribed rules will make it easier for institutions to manage risks when categorizing types of crypto assets, trading platforms, and consumer safety. Tae Oh, CEO of Gluwa, focused on the bill’s impact on stablecoins, describing it as a major first step in establishing a federal framework for USD-pegged stablecoins. He said the bill is a strong endorsement of responsible innovation, consumer protection, and the potential for a competitive and dynamic global stablecoin industry. Oh also underscored the significance of the pending Federal Reserve policy meeting, adding that it would only take a hint of a policy pivot to have a big impact on risk asset classes, including crypto.

The GENIUS Act and other similar efforts have been part of a global effort to create boundaries around the digital asset space. Analysts say the United States is starting to move in line with regulatory efforts in other large economies. The EU’s Markets in Crypto-Assets Regulation (MiCA) provides a continental point of reference, offering a single market for the issuance, trading, and storing of crypto assets. Similar measures are being developed in Singapore, South Korea, and Japan, whose digital asset guidelines will adapt to the fast-paced digital innovation. These developments suggest that policymakers worldwide are increasingly of one mind: the crypto industry needs to be regulated, but not at the cost of hampering innovation. However, global strategies vary, with some emphasizing the redesign of financial infrastructure, while others persist in enforcement using securities laws.