U.S. GENIUS Act Drives $1.5 Trillion Stablecoin Volume in July

The enactment of the U.S. GENIUS Act on July 18, 2025, marked a pivotal moment for the stablecoin market, triggering a record $1.5 trillion in on-chain stablecoin transactions during the same month [1]. This unprecedented surge was fueled by the act’s introduction of clear regulatory frameworks, mandating that stablecoin issuers maintain full reserve backing and operate under Federal Reserve oversight. These measures have significantly enhanced market confidence, particularly among institutional players [2].

Circle’s USDC emerged as the leading stablecoin, accounting for nearly $748 billion in July volume—over 49% of the total—while Tether’s USDT followed with $420 billion and the decentralized DAI with $261 billion [1]. The performance of Bitcoin and Ethereum also played a role, as rising prices encouraged investors to shift profits into stablecoins as a safe haven [1]. Analysts, including Linda Zheng of BlockTower Capital, noted that the GENIUS Act has accelerated institutional adoption by eliminating regulatory ambiguity [1].

Financial giants such as JPMorgan and Meta are already adapting to this new landscape. JPMorgan reportedly tested USDC transfers on its blockchain network, leveraging the act’s clearer compliance pathways, while Meta is exploring stablecoin-based remittance systems across its platforms [1]. These developments underscore the broader shift toward regulated digital assets for cross-border transactions and financial services [1].

The act’s regulatory requirements include strict reserve backing, monthly reporting, audits, and anti-money laundering (AML) protocols. Only licensed entities—such as banks or non-bank institutions with federal licenses—can issue stablecoins under the new law [1]. The implementation timeline sets a deadline of January 18, 2027, or 120 days after final regulatory rules are published [1].

As the market continues to evolve, the GENIUS Act is setting a precedent for global stablecoin regulation. With increased adoption by both individual investors and corporations, stablecoins like USDC, USDT, and DAI are transitioning from niche crypto assets to mainstream financial tools [1]. This shift, supported by robust regulatory oversight and rising digital asset prices, positions stablecoins as a critical component of the evolving financial infrastructure [1].

Source: [1] US GENIUS Act Triggers $1.5 Trillion Stablecoin Surge in July (https://coinmarketcap.com/community/articles/689321c1320e3f0b1f75b8f8/)