TLDR:
- Trump signed the GENIUS Act into law, giving stablecoins a clear regulatory framework and boosting crypto sentiment.
- Ether and Solana led the crypto rally following the new law as demand rose from payment firms and financial institutions.
- Crypto-linked stocks like Coinbase and BitMine gained as investors bet on stronger adoption after the stablecoin law.
- The crypto market cap hit $4 trillion, driven by institutional investment, new products, and the GENIUS Act’s passage.
Shares of crypto-related companies increased on Monday after U.S. President Donald Trump signed the GENIUS Act into law, as per reports. The bill provides a regulatory framework for stablecoins, which are digital tokens pegged to fiat currencies like the U.S. dollar.
The law passed both the Senate and the House of Representatives last week. The House voted 308 to 122 in favor, signaling bipartisan support. President Trump signed the bill late Friday, marking a key development for digital asset companies seeking regulatory clarity.
According to analysts at Deutsche Bank, the law bans interest payments on regulated stablecoins. This restriction is pushing some investors toward ether, which offers more flexibility in decentralized finance protocols.
Ether and Solana Lead Crypto Price Gains
Ether, the second-largest cryptocurrency by market value, reached $3,816.7 on Monday. It briefly touched its yearly high on Sunday and remained near that level.
“Payment firms and financial institutions will keep buying ether to pay fees for deploying stablecoins and tokenized assets,” said Gautam Chhugani, a senior analyst at Bernstein. Ether is often used in blockchain networks to facilitate transactions, including those related to stablecoins.
Subsequently, Solana also saw a surge in demand. The ProShares Ultra Solana ETF rose 16.6%, making it one of the top gainers in the crypto-linked stock market. Solana reached its highest price since February, supported by trading volume from investors looking to diversify their holdings.
Nonetheless, Bitcoin edged up 0.2% but remained more than 3% below its all-time high of $123,153, which it reached last week. XRP added 1% and traded near record highs, supported by rising interest across the crypto sector.
Crypto Companies Report Stock Gains
Several publicly traded companies with exposure to cryptocurrencies posted gains. Coinbase Global rose 1.9%, while Circle Internet, a stablecoin issuer, climbed 0.9%. These companies are expected to benefit from the new stablecoin law, which may lead to more institutional adoption.
Furthermore, BitMine, which has Peter Thiel as its top investor and Fundstrat’s Tom Lee as chairman, advanced 4.7%. Bit Digital, BTCS, and SharpLink Gaming also moved higher, gaining between 2.6% and 9.4%.
GameStop, which has recently added crypto assets to its balance sheet, continued its upward trend. The company has followed the strategy of bitcoin-holding firm MicroStrategy, which has seen a 3,000% rise in share value since 2020. MicroStrategy shares rose 2.2% on Monday.
Mergers and Market Developments in the Crypto Sector
Dynamix Corporation surged 30% after it announced a merger with Ether Reserve, a crypto venture backed by known digital asset investors. The merged company will be called The Ether Machine and aims to expand ether-focused products and services.
The total market value of the crypto sector reached $4 trillion on Friday, according to data from CoinGecko. This rise is being driven by new product launches, institutional investments, and increasing retail participation.
Wall Street banks, including Bank of America, are working on launching their stablecoins. The move aligns with the new law, which sets legal standards for the issuance and operation of such digital currencies in the U.S.
Stablecoins remain a key part of crypto trading. They are widely used by investors to move funds between tokens without exposure to high price fluctuations. The GENIUS Act brings oversight to this growing segment, which has seen rising activity in recent months.
