Key Points:
- The recent advancement of stablecoin legislation in the U.S. may pave the way for a prolonged bullish phase in the cryptocurrency market, according to a report by Bitwise.
- Bitwise highlighted this legislative action as possibly one of the most significant regulatory changes in the crypto sector.
- Notable beneficiaries from this shift could include ether, solana, uniswap, and aave, as per their analysis.
Overview
The progress concerning the stablecoin bill in the U.S. is poised to initiate a multi-year crypto bull market, as stated in a report from Bitwise released on Tuesday. The Senate has moved forward with the GENIUS Act towards a final vote, indicating potential passing of the first significant crypto regulatory framework this summer.
“Beyond the January 2024 approval of spot bitcoin ETFs, this may be the most critical regulatory milestone in crypto history, and perhaps even more consequential,” said Matt Hougan, Chief Investment Officer at Bitwise.
Learn more about stablecoins — cryptocurrencies pegged to assets like the U.S. dollar or gold, playing an important role in both crypto markets and international money transfers.
The GENIUS Act seeks to establish federal regulation for stablecoins valued over $10 billion, with the option for state regulation in harmony with federal guidelines, contrasting the STABLE Act from the House, which advocates for state regulation without conditions.
Bitwise noted that while stablecoin issuers face several obligations, there hasn’t been a comprehensive federal regulatory structure until now. The enactment of the GENIUS Act may lead to a bullish market phase not only for bitcoin but also for additional crypto assets, with projections predicting a substantial increase in the stablecoin market from its current valuation of $245 billion to as much as $2.5 trillion.
