USDT and Stablecoins Surge as GENIUS Act Nears Final Approval
The global stablecoin market capitalization has surpassed $250 billion, reaching an impressive $253.041 billion, as reported by DeFillama. This significant milestone comes at a pivotal moment, with the GENIUS Act, a bipartisan stablecoin regulation bill, nearing final approval after a strong 68-30 vote in the Senate. The House is currently reviewing the legislation, which could establish the U.S. as a frontrunner in the digital currency arena, potentially competing with China's digital yuan. This development marks a crucial step toward mainstream adoption and regulatory clarity for stablecoins like USDT, signaling robust growth and institutional confidence in the cryptocurrency sector.
Stablecoin Market Cap Hits $250B as GENIUS Act Nears Final Approval
The global stablecoin supply has surged past $250 billion, reaching $253.041 billion, according to DeFillama data. This milestone coincides with the GENIUS Act, a bipartisan stablecoin regulation bill, nearing final approval after passing the Senate with a 68-30 vote. The House is now reviewing the legislation, which could position the U.S. as a leader in the digital currency space, potentially rivaling China's digital yuan.
Tether's USDT dominates recent stablecoin minting, driving a 2.34% monthly market cap increase. The regulatory momentum has buoyed crypto-related stocks, with Circle (CRCL) and Coinbase (COIN) jumping 33.8% and 16%, respectively. Critics like Senator Elizabeth Warren warn of unchecked growth risks, but proponents see the bill as a watershed moment for U.S. crypto competitiveness.
TRON Surpasses Ethereum in Stablecoin Usage
TRON's price has risen by 5% over the past three days, buoyed by ceasefire news, though the momentum pales in comparison to the surge triggered by Justin Sun's reverse merger announcement. Despite the tempered price action, on-chain metrics paint a bullish picture.
The network has achieved a pivotal milestone, now hosting $80 billion in stablecoins—eclipsing Ethereum's once-dominant market share. USDT transfers on TRON have spiked, reflecting broad adoption by retail and institutional users alike. This growth heightens the probability of TRON retesting its all-time high.
A CryptoQuant report underscores TRON's ascent as the preferred network for USDT transactions, attributing its appeal to low fees and rapid settlement. Institutional transfers exceeding $1 million have ballooned to $215 billion since mid-2024, while retail-sized transfers ($100K–$1M) trail closely at $195 billion.
GENIUS Act Poses Regulatory Challenge to Tether's Stablecoin Dominance
The GENIUS Act, recently passed and awaiting final approval, threatens to disrupt Tether's market-leading position in the stablecoin sector. Proposed disclosure requirements WOULD force issuers to provide monthly audited reports detailing reserve composition—a potential vulnerability for USDT given its history of limited transparency.
Tether's reliance on non-traditional reserve assets like Bitcoin and gold raises compliance questions. While the company maintains significant Treasury bill holdings, regulators remain skeptical about liquidity during market stress. "The bill specifically targets opacity in reserve management," notes former federal prosecutor Scott Armstrong in a Wall Street Journal interview.
The legislation reflects growing institutional scrutiny of stablecoins as systemic financial instruments. Market participants await Tether's response to what could become the most stringent regulatory framework yet for dollar-pegged cryptocurrencies.
