The GENIUS Act: A Game-Changer for Markets and Crypto

Merlin Rothfeld on Jul 31, 2025

On July?18, 2025, President Trump signed the GENIUS Act into law—the first major federal legislation to regulate stablecoins in the U.S. This isn’t just political theater—it’s a seismic shift for markets, traders, and the broader crypto ecosystem. Here’s why it matters and how to prepare.

 

What the GENIUS Act Does

  • Stablecoin regulation for the first time. It requires issuers to back each coin with 1:1 liquid reserves, conduct regular audits, and provide transparency to consumers. These reserves must consist of US Dollars, and short-term treasuries with maturities of under 93 days.
  • Dual oversight. Both federal and state regulators will supervise stablecoin issuers—shortly after the Act’s rollout. Over $10b, will be state supervised, over $10b Federal.
  • Anti-AML protocols. Issuers must follow stringent anti-money laundering and consumer protections.
  • No CBDC allowed. It blocks any Federal Reserve-issued digital dollar, promoting private innovation instead.

 

What This Means for Markets

  1. Boosts stablecoin credibility. With clear guardrails and transparency, businesses and institutions can now trust, adopt, and integrate stablecoins without fear of collapse.
  2. Expands payment networks. Expect to see stablecoins used in Google, Uber, Apple, Visa, and more—streamlining and speeding up cross-border transactions.
  3. Rally in crypto assets. Traders are already bidding up crypto-related stocks and tokens on the expectation of broader adoption and institutional involvement.
  4. Treasury impacts. Issuers backing coins must use U.S. Treasuries, which could shift demand, potentially affecting yields—short-term supply may rise, stirring bond market ripple effects.

What It Means for Crypto

  • Stablecoins go mainstream. First-time consumer protections and issuer accountability make them viable for payments—not just trading.
  • Building blocks for DeFi. Once rails are secure, expect a surge in decentralized finance, NFTs, and tokenized assets drawing from a safer base.
  • Big Tech gets in. With clear rules and proven infrastructure, expect major corporations to roll out their own stablecoins and crypto payment systems.

 

Trader Takeaways

  • Volatility window: The Act’s signing and upcoming regulations will create spikes in crypto, fintech, and bank stocks tied to digital asset adoption.
  • Yield diversifier: Institutional stablecoin-backed Treasury demand could offer new angles on rotations and yield curve trading.
  • Market structure bets: As regulations stabilize, early-stage stablecoin platforms and issuers may find themselves in bullish setups. Case in point is Circle which soared on it’s IPO and hasn’t looked back yet!

 

Bottom Line

The GENIUS Act marks a pivotal moment: stablecoins shift from speculative fringe to regulated mainstream. That means better safeguards and more opportunity—but only for traders who understand the evolving playbook.

If you’re going to trade—and win—in this new crypto landscape, you need to go deeper than headlines. You need structure, strategy, and clarity.

That’s exactly where Trading Academy delivers. Our team is breaking down the GENIUS Act’s rollout, regulatory timeline, and strategic plays. From crypto to fixed income, we’re arming you with the analysis and tools to stay ahead.

Whether you’re trading on charts or capitalizing on macro shifts, it all starts with knowing the game—then playing it purposefully.