25-7-2025 – The stablecoin sector has experienced a dramatic $4 billion expansion in just one week since the GENIUS Act became law, pushing total market capitalization beyond $264 billion as institutional players rush to capitalize on new regulatory clarity.
The landmark federal legislation, signed July 18, has removed regulatory uncertainty that previously deterred traditional financial institutions from entering the stablecoin market. Major Wall Street players are now moving aggressively into the space, with Anchorage Digital launching a compliant stablecoin platform Tuesday and asset manager WisdomTree debuting its USDW token under the new framework.
Banking giants including Bank of America, JPMorgan, and Citigroup have all confirmed preparations to issue dollar-backed stablecoins now that the GENIUS Act provides clear federal guidelines for fiat-backed tokens. The legislation requires compliant issuers to maintain full reserves, undergo regular audits, and obtain proper licensing—standards that have attracted institutional capital previously sitting on the sidelines.
The surge primarily benefits fiat-backed stablecoins, which represent 85% of the market and include dominant players like Tether’s USDT and Circle’s USDC. While algorithmic stablecoins remain sidelined under the new rules, the regulatory framework has created a competitive landscape where traditional finance can directly challenge crypto-native issuers.
