GENIUS Act Fuels $272B Stablecoin Surge Hits 7% of Crypto Market

Global interest in stablecoins reached an unprecedented peak in July 2025, as Google searches for the term “stablecoins” hit an all-time high, coinciding with the passage of the Guiding and Empowering Nation’s Innovation for US Stablecoins (GENIUS) Act [1]. The legislation, enacted on July 18, has catalyzed a surge in institutional and retail adoption, propelling the stablecoin market cap to $272 billion, or 7% of the total cryptocurrency market, according to data from Coingecko [1]. U.S. dollar-pegged stablecoins dominate the sector, comprising 98% of the market, with Tether (USDT) maintaining a 60% share.

The GENIUS Act, designed to provide regulatory clarity, has spurred a wave of innovation. Financial institutions such as Interactive Brokers and Robinhood have launched or explored their own stablecoins, leveraging the asset class to enable 24/7 funding, faster settlements, and enhanced user engagement [1]. Nassar Al Achkar, Chief Strategy Officer at CoinW exchange, noted that stablecoins are increasingly serving as a “hedge against crypto volatility” and a tool for cross-border payments, with institutions prioritizing safety alongside innovation [1].

Bitwise Asset Management reported record-breaking stablecoin transactions in 2025, with analysts describing the market’s trajectory as “parabolic.” The correlation between stablecoin activity and Bitcoin price trends has also drawn attention, as rising demand in the sector coincides with upward movements in Bitcoin prices [1]. Meanwhile, public curiosity has spiked, reflected in a 120% year-over-year increase in Google searches for terms like “stablecoin benefits” and “how to buy stablecoins.”

The GENIUS Act’s impact extends beyond market dynamics. By streamlining oversight and encouraging technological advancements, the legislation has reshaped perceptions of stablecoins, transitioning them from speculative assets to foundational elements of global finance. However, challenges persist, particularly regarding reserve transparency and regulatory harmonization. The proposed requirements for audit disclosures and reserve backing could mitigate risks associated with liquidity crises, yet critics argue they may burden smaller firms [1].

As the sector evolves, stablecoins are increasingly viewed as building blocks of next-generation financial infrastructure. Their role in facilitating cross-border transactions and financial inclusion is gaining traction, particularly in markets with limited traditional banking access. The convergence of legislative action and public interest underscores the strategic importance of stablecoins in the broader financial landscape.

Source: [1] Stablecoin Google Searches Hit All-Time High as GENIUS Act Fuels $272B Market Surge (https://www.newsbtc.com/news/stablecoin-google-searches-hit-all-time-high-as-genius-act-fuels-272b-market-surge/)