Stablecoin market cap grew $9.11B in 23 days after GENIUS Act passed.

Stablecoin market cap grew $9.11B in 23 days after GENIUS Act passed.

The stablecoin market has experienced a remarkable surge in market capitalization following the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) on July 18, 2025. In just 23 days, the total market cap of stablecoins increased by $9.11 billion, reaching a new all-time high of $261 billion [1].

The GENIUS Act, which establishes the first federal framework for payment stablecoins, has been a significant driver of this growth. The legislation mandates full 1:1 backing by cash or liquid U.S. Treasuries, monthly reserve disclosures, and auditing requirements, enhancing regulatory clarity and investor confidence [2].

The stablecoin sector's consistent growth coincides with enhanced regulatory clarity. The Act positions stablecoin issuers as financial institutions under the Bank Secrecy Act (BSA), requiring robust anti-money laundering (AML) and sanctions compliance programs [2]. This regulatory shift has accelerated adoption within the stablecoin sector as builders, users, and stakeholders gain increased confidence in its utility and efficiency.

Tether (USDT) maintained its sector leadership position, with market capitalization climbing 3.61% to $164 billion in July, marking its twenty-third consecutive monthly expansion [1]. Despite this growth, USDT's market dominance experienced a slight contraction in July, declining from 62.5% to 61.8% [1].

USD Coin (USDC) also showed strong performance with a 3.78% increase to $63.6 billion, while Ethena USDe posted remarkable growth of 43.5% to reach $7.60 billion in market capitalization [1]. Ethena USDe’s expansion proves particularly noteworthy, occurring despite a significant decrease in staked USDe APY from over 20% to 9.79% [1].

The stablecoin ecosystem on the Tron network reached a new all-time high in July, climbing to $81.9 billion, with Tron now commanding over 50% of the total USDT supply across all blockchain networks [1]. This shift reflects the growing influence of regulatory clarity and market confidence in the stablecoin sector.

The stablecoin wave of adoption and innovation has prompted industry leaders like Ripple CEO Brad Garlinghouse to project explosive sector growth, suggesting the market could expand from its current $261 billion valuation to as much as $2 trillion in the near future [1]. However, JPMorgan has expressed skepticism regarding bullish stablecoin projections, forecasting more modest growth to $500 billion by 2028 [1].

The enactment of the GENIUS Act has not only boosted market capitalization but also encouraged countries and traditional financial institutions to soften their stances toward crypto stablecoin adoption. For example, on August 1, Hong Kong’s licensing regime announced plans to permit HKD- and CNY-pegged stablecoins to compete in Asian settlement markets currently dominated by USD [1].

The stablecoin market's growth trajectory is poised to continue, driven by regulatory clarity, increasing adoption, and technological advancements. However, challenges remain, including the need for full implementation of the GENIUS Act and the development of robust compliance and operational frameworks.

References:
[1] https://cryptonews.com/news/stablecoin-market-cap-soars-4-87-to-261b-following-22-month-growth-streak/
[2] https://www.ainvest.com/news/passes-historic-stablecoin-framework-genius-act-2508/