On July 18, 2025, the US Congress officially passed and President Trump signed the GENIUS Act – a framework law regulating stablecoins.

Only stablecoins that are 100% backed by real assets (fiat) are allowed to circulate.

Require periodic public audits.

Issuers must register and comply with regulations similar to banks.

Algorithmic stablecoins (like the old UST) could be banned or tightly controlled.

So how will it affect the world of cryptocurrency?

Impact Explanation Increased trust in stablecoins With backed assets and transparent audits, users feel more secure holding stablecoins. Attracting institutional capital Financial institutions will invest more when there are clear laws and legal safety. Reducing the risk of collapse like UST/LUNA Eliminating opaque stablecoins, minimizing systemic crises. Strengthening the position of USD in blockchain USD-pegged stablecoins like USDC, USDT will become the main payment platform.

Impact Explanation Altcoins may be strongly liquidated due to capital flowing into stablecoins for "safe haven". Some stablecoins will be removed from US exchanges like DAI, FRAX if they do not meet transparency criteria – leading to sell-off pressure. Increased overall regulatory control If expanded to DeFi, staking, and lending – may slow down decentralized development.

Advice for investors

Prioritize holding highly transparent stablecoins, such as USDC (Circle), or USDT if compliance with the new law is confirmed.

Avoid algorithmic stablecoins, as they risk being restricted or delisted from major exchanges.

Consider reallocating some capital from altcoins to safe stablecoins, especially during market volatility.

Closely monitor the list of affected stablecoins, and which exchanges implement the new law the earliest (Binance US, Coinbase…).#BinanceHODLerC #ETHBreakout3.5k #