Ethereum News Today: Ethereum Surges 6% as GENIUS Act Boosts Stablecoin Adoption

Ethereum (ETH) has experienced a significant price increase following a major shift in U.S. cryptocurrency policy with the enactment of the GENIUS Act. This landmark legislation establishes the first federal regulations for stablecoins, providing a clear framework for their mainstream adoption. The GENIUS Act, signed into law by the U.S. President, aims to bolster the dollar's global dominance by integrating digital assets into the financial system. The act is anticipated to attract trillions of dollars in liquidity to the U.S. economy, particularly to the U.S. Treasury bill, as required by the legislation for stablecoin issuers.

The passage of the GENIUS Act has had an immediate and positive impact on the crypto market, with Ethereum's price surging nearly 6% in the past 24 hours, briefly surpassing the $3,800 mark. This surge outperformed the broader market, reflecting the optimistic sentiment surrounding the new regulatory environment. The legislation is viewed as a significant step toward the mainstream adoption of stablecoins, which are expected to enhance payment systems and increase the global utility of the U.S. dollar.

The GENIUS Act has generated excitement within the crypto community, with many considering it a milestone for the industry. The act provides a clear regulatory framework for stablecoins, which are digital assets pegged to the value of a fiat currency, such as the U.S. dollar. This framework is expected to drive innovation and growth in the stablecoin sector, which has seen rapid expansion in recent years.

Financial analysts at Bernstein have noted that the GENIUS Act is helping to push stablecoins into the mainstream. Since many of these stablecoins operate on the Ethereum blockchain, demand for ETH is increasing. Ethereum’s price has increased by about 25%, driven by rising investor interest and institutional activity. At the time of writing, the digital asset is trading at $3,824, up 2.68% in the last 24 hours. Bernstein’s report explained that Ethereum’s recent price surge is primarily due to increasing demand from various sectors of the financial world. Large investment firms, such as BlackRock, are beginning to increase their holdings of ETH in their portfolios. At the same time, banks and tech companies are using Ethereum coins to pay for activity on its network. The report also said that some new businesses are now holding ETH as part of their company funds. This is similar to how some companies have started keeping Bitcoin. Large institutions are expected to continue investing in Ethereum, using it to support tokenized assets and decentralized financial tools.

Ethereum, often seen as the face of blockchain innovation, is also revitalizing the NFT space. The global NFT market cap rose to $6.04 billion, a 16.9% increase in just 24 hours. This is the highest level seen since early February. Ethereum is also seeing a rise in interest from investors through exchange-traded funds (ETFs). Last Wednesday, Ethereum ETFs recorded a historic $726.74 million in net inflows in a single day. This marked the highest daily inflow ever for ETH-based ETFs. Bernstein analysts suggest that this is not just another hype-driven crypto rally. Instead, the experts describe it as a “blockchain financial services cycle”, fueled by real-world adoption and legal clarity.