After President Donald Trump signed the GENIUS Act on July 21, 2025, shares of companies that deal with cryptocurrencies increased. This law, which passed with support from both parties, is a big step forward for the crypto business, which has been looking for clear rules to make it more legitimate for a long time.

The bill’s passing has caused a rise in the prices of Ethereum and other cryptocurrencies, which shows that investors are becoming more confident in the sector.

The GENIUS Act: A Big Deal for Stablecoins

On July 18, 2025, the GENIUS Act became law as it provides rules for stablecoins, which are cryptocurrencies that are linked to assets like the U.S. dollar to keep their value stable. By a vote of 308 to 122, the House of Representatives passed the bill, and the Senate approved it. 

The bill says that stablecoins must be backed by liquid assets like U.S. dollars or Treasury bills, and issuers must tell the public how much of their reserves are made up of these assets every month. This structure is meant to build confidence in consumers, which will make stablecoins more appealing for banks, stores, and consumers for quick payments.

The law makes it illegal for regulated stablecoins to pay interest or dividends. Deutsche Bank says this is causing Ethereum prices to go up. As an option for making money in decentralized finance (DeFi), investors are moving to Ethereum, the second-largest cryptocurrency in the world. On July 20, 2025, Ether reached its highest point this year, trading at $3,816.7.

Crypto Stocks Surge

The passing of the GENIUS Act caused a big rise in stocks tied to cryptocurrencies. Circle Internet (CRCL.N), which issues stablecoins, was up 1.9%, and Coinbase Global (COIN.O), which runs a crypto exchange, went up 2%. GameSquare Holdings (GAME.O) rose 4.6% after saying it will sell shares to pay for investments in cryptocurrencies. 

BitMine, Bit Digital, and BTCS are just a few of the other companies that witnessed gains of between 2.6% and 9.4%. This is part of a larger trend of corporations adding crypto to their balance sheets, following the lead of Strategy (MSTR.O), whose shares have gone up about 3,000% since 2020.

The crypto market as a whole also did well, with Solana hitting its highest point since February and the ProShares Ultra Solana ETF rising 16.2%. CoinGecko statistics show that the total value of all cryptocurrencies reached $4 trillion on July 18, 2025. This shows how powerful the sector is becoming.

Effects on Business and The Economy

Stablecoin issuers need to retain more liquid assets to back their tokens, which should make the U.S. dollar a better global reserve currency and raise demand for U.S. Treasuries. Scott Bessent, the Treasury Secretary, said that the measure may make the stablecoin market worth $2 trillion in the next few years.

Still, there are worries. Some Democrats are upset that there aren’t stronger restrictions against money laundering and that President Trump’s crypto businesses, like World Liberty Financial, can benefit.

The approval of the GENIUS Act is a big deal for the crypto business. It has caused stocks to go up and Ethereum to rise, and it has made stablecoins more legitimate. As businesses and investors become used to these new rules, the sector’s integration into traditional finance is likely to speed up. This might change how payments work and give the U.S. more power in the economy.