Summary:
– President Trump has enacted the GENIUS Act, establishing a regulatory framework for stablecoins and boosting optimism in the cryptocurrency sector.
– Ether and Solana led the charge in the crypto market, driven by increased demand from payment processors and financial institutions.
– Crypto-focused stocks, including Coinbase and BitMine, saw gains as investors anticipated greater adoption following the new stablecoin legislation.
– The overall market value of cryptocurrencies soared to $4 trillion, fueled by institutional investments, innovative products, and the passage of the GENIUS Act.
Report:
On Monday, shares of companies involved with cryptocurrencies experienced a rise after U.S. President Donald Trump signed the GENIUS Act, according to reports. This new law offers a clear regulatory framework for stablecoins, digital currencies tied to traditional fiat currencies like the U.S. dollar.
The legislation successfully passed through both the Senate and the House of Representatives last week, receiving bipartisan support with a House vote of 308 to 122. President Trump signed the bill on Friday evening, marking a significant milestone for digital asset companies seeking regulatory clarity.
Deutsche Bank analysts noted that the law prohibits interest payments on regulated stablecoins, prompting some investors to shift toward ether due to its flexibility in decentralized finance protocols.
Ether and Solana Lead Crypto Price Increases
Ether, the second-largest cryptocurrency by market capitalization, reached $3,816.7 on Monday, maintaining levels near its annual high. “Payment firms and financial institutions will continue to acquire ether for fees associated with deploying stablecoins and tokenized assets,” stated Gautam Chhugani, a senior analyst at Bernstein. Ether is frequently used in blockchain networks to facilitate transactions, including those involving stablecoins.
Similarly, Solana experienced a surge in demand, with the ProShares Ultra Solana ETF climbing 16.6%, making it a standout performer in the crypto-linked stock market. Solana hit its highest price since February, supported by trading volumes from investors seeking portfolio diversification.
Meanwhile, Bitcoin saw a modest increase of 0.2% but remained over 3% below its all-time high of $123,153, achieved last week. XRP rose by 1%, trading near record highs amid growing interest in the crypto sector.
Gains Reported by Crypto Companies
Numerous publicly traded companies with cryptocurrency exposure reported stock gains. Coinbase Global rose by 1.9%, while Circle Internet, a stablecoin issuer, saw a 0.9% increase. These firms are expected to benefit from the new stablecoin law, potentially leading to increased institutional adoption.
Additionally, BitMine, backed by top investor Peter Thiel and chaired by Fundstrat’s Tom Lee, advanced 4.7%. Other companies like Bit Digital, BTCS, and SharpLink Gaming also made gains, ranging from 2.6% to 9.4%.
GameStop, which has recently incorporated crypto assets into its balance sheet, continued its upward trajectory. The company follows the strategy of MicroStrategy, a bitcoin-holding firm whose share value has soared 3,000% since 2020. MicroStrategy shares increased by 2.2% on Monday.
Crypto Sector Mergers and Market Developments
Dynamix Corporation’s stock surged 30% after announcing a merger with Ether Reserve, a crypto venture supported by prominent digital asset investors. The newly formed company, The Ether Machine, aims to expand ether-centric products and services.
According to CoinGecko data, the total market capitalization of the crypto sector reached $4 trillion on Friday. This growth is driven by new product launches, institutional investments, and growing retail participation.
Wall Street banks, including Bank of America, are preparing to launch their stablecoins, aligning with the new law that sets legal standards for the issuance and management of such digital currencies in the U.S.
Stablecoins continue to play a crucial role in cryptocurrency trading, enabling investors to transfer funds between tokens without exposure to significant price volatility. The GENIUS Act introduces oversight to this expanding segment, which has seen increased activity in recent months.
