Bitcoin News Today: Stablecoins surge $4B in July as U.S. passes key regulatory law

Stablecoins added $4 billion to their market cap in July as the U.S. House of Representatives passed key cryptocurrency legislation, including the GENIUS Act regulating stablecoins, which was signed into law by President Donald Trump [1]. The legislation, while not including provisions for interest-bearing stablecoins—a point of contention among industry leaders—was widely seen as a major step toward regulatory clarity for the sector [1]. Analysts have noted that with the potential passage of the CLARITY Act in the Senate, the stablecoin industry is poised for substantial growth [1].

The stablecoin sector also saw increased activity, with the number of monthly active addresses rising more than 20% in July to over 38 million [1]. Total stablecoin market capitalization surpassed $250 billion during the month, with transaction values reaching $7 trillion in Q1 2025 [1]. Sygnum’s chief investment officer Fabian Dori highlighted the GENIUS Act as a confidence booster for innovation in stablecoin-based services [1].

Meanwhile, Bitcoin exchange reserves continued their downward trend, falling 2% in July and reaching a 14% decline since January 2025 [1]. For the first time since 2018, less than 15% of the total Bitcoin supply was on exchanges, a sign of long-term holding behavior among investors [1]. Analysts, including Bybit’s CEO Ben Zhou, noted that this could lead to a potential Bitcoin "supply shock" if demand continues to rise while supply remains constrained [1]. The decreasing availability of Bitcoin on OTC desks has led some to predict increased volatility or a price rally, as investors hold rather than trade [1].

Tokenized real-world assets (RWAs) also made progress, with total value passing $25 billion and growing 2.5% in July [1]. Binance reported that the sector is well-positioned for further growth as regulatory frameworks become clearer [1]. Tokenized stocks, in particular, gained traction, with their value rising 15% to over $400 million. Robinhood introduced RWA trading at the beginning of the month, contributing to a nearly 700% increase in tokenized stock addresses [1]. However, legal uncertainties remain, especially regarding the lack of ownership rights for tokenized equity issued by private firms [1].

In the U.S., three states—Missouri, New Hampshire, and Oregon—enacted new cryptocurrency-related laws in July [1]. Missouri updated rules for crypto ATMs and recognized certain metals-backed currencies as legal tender [1]. New Hampshire established a committee to study regulatory frameworks for stable tokens and RWAs, while Oregon expanded its abandoned property law to include cryptocurrencies [1]. Conversely, Arizona’s Governor Katie Hobbs vetoed a bill that would have created a state stockpile from seized crypto assets, arguing it could discourage law enforcement cooperation [1].

Globally, seven countries introduced or finalized licensing frameworks for crypto firms in July. The Hong Kong Monetary Authority finalized stablecoin regulations and launched a public registry for licensed issuers [1]. In Europe, Bybit, OKX, and CoinShares received licenses under the MiCA framework, while Ripple and AllUnity sought regulatory approval for expansion and stablecoin issuance [1]. Bitstamp gained approval in Singapore, and both Ripple and Circle are pursuing U.S. banking licenses [1].

The regulatory developments across the globe suggest a maturing crypto ecosystem, with governments increasingly recognizing the need for structured oversight. As the market continues to evolve, the interplay between regulatory clarity and investor behavior will likely shape the next phase of growth for both stablecoins and tokenized assets [1].

Source: [1] Stablecoins add $4B, Bitcoin exchange reserves below 15%: July in charts (https://cointelegraph.com/news/stablecoins-4b-bitcoin-exchange-reserves-july-charts?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)