Crypto Market Volatile Amid Policy Shifts, GENIUS Act Boosts Circle, Coinbase 17%

The U.S. policy landscape in 2025 is marked by significant shifts, particularly in the realms of cryptocurrency regulation and fiscal spending, which are fueling volatility in the crypto market. The Federal Reserve's decision to pause interest rates between 4.25% and 4.50% on June 18 sparked mixed reactions. While Bitcoin and Ethereum showed muted responses, altcoins like Tron and Solana exhibited sharper intraday movements due to speculation about future policy changes. The market's sensitivity to both policy signals and political commentary, such as Trump's criticism of Powell, highlights the heightened reactivity of the crypto space.

The passage of the GENIUS Act on June 17 introduced clear rules for stablecoins like USDC and USDT, boosting investor confidence in federally backed crypto regulations. This legislation favored Circle’s stock and Coinbase, which saw a 17% surge due to its deep stablecoin ties. Ethereum also gained modestly as most stablecoins rely on its network. However, the bill has sparked debates around fairness and political influence, with some users expressing concerns about favoritism towards politically connected projects.

The One Big Beautiful Bill Act, promising massive federal spending, has reignited discussions about Bitcoin's inflation hedge narrative. Investors are turning to decentralized assets to shield against potential currency devaluation amid fears of a deepening national deficit. Tokens like Monero and MakerDAO have seen increased interest, and politically-themed meme coins are trending, though largely due to speculative buzz. If crypto-specific regulations enter the final bill, it could simplify taxation and spur wider adoption.

These policy shifts are creating a dynamic and unpredictable environment for investors. The interplay between regulatory developments, fiscal policies, and geopolitical tensions is reshaping investment landscapes. As the year progresses, the market will continue to be influenced by these factors, with potential for both significant gains and losses. The heightened liquidity and risk-on sentiment fostered by fiscal policies are key drivers of the current market volatility, while the growing acceptance of cryptocurrencies within traditional financial institutions could further stabilize the market and attract more institutional investment.