Treasury Secretary Bessent has hailed signing the GENIUS Act as a “milestone achievement” for cryptocurrency regulation, marking what many see as a historic moment for the digital asset industry.
The legislation, passed with bipartisan support in the US House, establishes a clear federal framework for digital assets, addressing key areas such as stablecoins, custody, and market structure.
Ian De Bode, chief strategy officer at Ondo Finance, said the bill opens the door for companies like his to expand operations nationwide, calling it “the start of a new regulatory era.”
Speaking with news outlets, he said clear regulations are essential for major financial institutions to participate in digital asset infrastructure. He explained that the lack of legal clarity was the biggest barrier and added that clearer rules would lead to faster adoption.
He also noted the involvement of Patrick McHenry, former Chair of the House Financial Services Committee and now Vice Chair at Ondo Finance. McHenry was with former President Donald Trump when the bill was signed.Â
GENIUS Act sparks market optimism
Crypto markets rallied on news of the GENIUS Act’s passage, and major digital currencies such as Bitcoin (BTC) and Ethereum (ETH) gained momentum. This is no coincidence, industry leaders say.
Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, said the move shapes investor sentiment in the crypto space. He noted that the milestone drives broad market optimism, attributing the recent Bitcoin rally and growing interest in altcoins like XRP and DOGE to increased regulatory clarity.
He added that investors need certainty to commit for the long term, and that certainty comes from clear, enforceable rules.
Apart from these fluctuations, the bill could change how investment firms and hedge funds deploy capital. Obtaining prescribed rules will make it easier for institutions to manage risks when categorising types of crypto assets, trading platforms, and consumer safety.
Tae Oh, CEO of Gluwa, focused on the bill’s impact on stablecoins. He said the GENIUS Act marks a major first step in establishing a federal framework for USD-pegged stablecoins. He described it as a strong endorsement of responsible innovation, consumer protection, and the potential for a competitive and dynamic global stablecoin industry.
He explained that the bill forms the groundwork for adopting digital assets into the broader financial infrastructure, particularly payments, decentralized finance (DeFi), and cross-border transactions. He said that when the fog clears on regulations, trust in stablecoins is a legitimate tool for everyday finance.
Oh, also underscored the significance of the pending Federal Reserve policy meeting, adding that it would only take a hint of a policy pivot to have a big impact on risk asset classes, including crypto.
US aligns with global crypto regulation trend
The GENIUS Act and other similar efforts have been part of a global effort to create boundaries around the digital asset space. Analysts say the United States is starting to move in line with regulatory efforts in other large economies.
The EU’s Markets in Crypto-Assets Regulation (MiCA), which is being transposed into law across all Member States, provides a continental point of reference. Offering a single market for the issuance, trading, and storing of crypto assets, MiCA already has companies lining up for a regulatory jurisdiction in Europe.
Similar measures are being developed in Singapore, South Korea, and Japan, whose digital asset guidelines will adapt to the fast-paced digital innovation. These developments, seen in combination, suggest that policymakers worldwide are increasingly of one mind: the crypto industry needs to be regulated, but not at the cost of hampering innovation.
However, global strategies vary. Some, especially in the Global South, emphasize the redesign of financial infrastructure, while others, as with the US SEC, persist in enforcement using securities laws.
