GENIUS Act Signed into Law; Ethereum Surges Past $3,700

In a significant development for the cryptocurrency sector, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) into law on July 18, 2025. This landmark legislation introduces a comprehensive regulatory framework for stablecoins, aiming to bolster consumer protection and integrate these digital assets more seamlessly into the broader financial system.

GENIUS Act: A New Era for Stablecoin Regulation

The GENIUS Act mandates that stablecoins be backed one-to-one by U.S. dollars or other low-risk assets, ensuring a stringent standard for reserves, audits, and transparency. Prior to this legislation, stablecoins operated without such rigorous backing requirements, leading to concerns about their stability and reliability. The act also establishes dual federal and state supervision, enhancing consumer protection measures.

Introduced by Senator Bill Hagerty (R-TN) on May 21, 2025, the GENIUS Act garnered bipartisan support. The Senate passed the bill on June 17, 2025, with a 68–30 vote, and the House followed suit on July 17, 2025. President Trump signed it into law the next day, marking a pivotal moment in the U.S. approach to digital asset regulation.

Ethereum’s Price Surge Amid Market Optimism

In the wake of the GENIUS Act’s passage, the cryptocurrency market has experienced notable movements, particularly with Ethereum (ETH). As of July 20, 2025, Ethereum’s price surpassed the $3,700 mark, reflecting a 24% increase over the past week. This surge is attributed to growing institutional interest and the broader market’s positive response to the new regulatory clarity provided by the GENIUS Act.

Ethereum’s upward trajectory is further supported by recent developments, including founder Vitalik Buterin’s announcement of the “Ethereum 3.0” scalability roadmap, which aims to integrate zk-SNARKS natively into the base protocol. This advancement is expected to enhance Ethereum’s scalability and efficiency, making it more attractive to developers and investors alike.

Market Implications and Future Outlook

The enactment of the GENIUS Act signifies a proactive approach by the U.S. government to regulate and legitimize the stablecoin market. By establishing clear guidelines and oversight, the act aims to foster innovation while ensuring consumer protection. This regulatory clarity is likely to attract more institutional investors to the cryptocurrency space, contributing to market stability and growth.

Ethereum’s recent price surge underscores the market’s optimism regarding these regulatory developments. As the second-largest cryptocurrency by market capitalization, Ethereum’s performance often sets the tone for the broader market. The combination of favorable legislation and technological advancements positions Ethereum and the wider crypto market for potential continued growth.

In conclusion, the signing of the GENIUS Act into law marks a significant milestone in the regulation of digital assets in the United States. Coupled with Ethereum’s impressive price performance, these developments highlight the evolving landscape of the cryptocurrency market and its increasing integration into the mainstream financial system.

For more detailed information on the GENIUS Act, you can refer to the official documentation on the GENIUS Act. Additionally, insights into Ethereum’s recent price movements are available in the latest market analysis.