2025-12-19 14:53:11

- Stablecoin Regulations: The GENIUS Act

The GENIUS Act, enacted in mid-July, established a clear federal regulatory framework for stablecoins and their issuers in the United States, requiring full reserves backed by US dollars and providing clear anti-money laundering guidelines.

Deutsche Bank Research reported that this historic legislation positions the United States at the forefront of stablecoin regulation, paving the way for other countries to review their own stablecoin regulations (or lack thereof).

"It’s a significant milestone for the cryptocurrency industry, both in the United States and globally," according to Deutsche Bank analysts.

The report also noted that the passage of the GENIUS Act will strengthen the dominance of the US dollar, as stablecoins denominated in US dollars account for over 99% of the total market capitalization of stablecoins. The GENIUS Act has solidified the role of stablecoin issuers as quasi-market funds, supporting US short-term debt markets and directing non-dollar-denominated liquidity toward the US dollar.

The US Treasury Department expects the value of Treasury bonds held by stablecoin issuers (excluding interest-bearing stablecoins) to reach approximately one trillion dollars by 2028. Tether alone held over $120 billion in Treasury bonds as of Q1 2025, as shown in the chart below, ranking among the largest holders of US Treasury bonds.

Chart showing the size of major foreign investors’ holdings of US Treasury bonds (billions of dollars) (2025). Source: Deutsche Bank Research

Additionally, under the GENIUS Act, competition between traditional banks, stablecoin issuers, and major corporations is encouraged to enter this rapidly growing sector and expand stablecoin use beyond digital asset trading. Retail companies (such as Walmart, Amazon, and Airbnb) and payment companies (like PayPal and Shopify) are racing to capitalize on the benefits of stablecoins, including lower transfer costs, 24/7 availability, faster settlement, and fewer barriers compared to traditional bank accounts.

In June, US Treasury Secretary Janet Yellen predicted that the stablecoin market would grow from its current $268 billion to over $2 trillion in the coming years.

These regulations and developments are expected to boost stablecoin adoption not only in the United States but worldwide, thereby supporting Bitcoin adoption, as stablecoins are generally considered.

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Before00zero

2025-12-19 14:48:30

- Bitcoin in 2025: Favorable Regulatory Shifts, Institutional Adoption, and Record Volatility
A turbulent journey between all-time highs and sharp corrections
Bitcoin's price reached a new all-time high of $126,199 on October 6, pushing its market cap briefly above $2.47 trillion, making it the seventh-largest asset in the world, surpassing tech giants like (AMZN) and Meta Platforms (META).

However, the surge was followed by a sharp correction, with Bitcoin's price dropping to around $85,000 in mid-December. Although 2025 ended with relative stability, it was a volatile period marked by record highs, steep declines, and high fluctuations.

President Trump's Support for Cryptocurrencies
Donald Trump's victory in the November 2024 U.S. presidential election was seen as a positive indicator for Bitcoin and digital currency markets. During his campaign, Trump adopted a pro-cryptocurrency stance and promised to bring about a radical change in U.S. policy towards them, contrasting with the Biden administration's strict crackdown on the sector, which included more than 100 enforcement actions by the U.S. Securities and Exchange Commission against crypto companies.

The positive development for digital currencies began with the announcement by SEC Chairman Gary Gensler on November 21, 2024, of his resignation, effective January 20, the day of President Trump's inauguration. This news had a positive impact on the crypto markets, as Gensler had previously taken a stance opposed to digital asset policies.

The chart below from CryptoQuant shows that the percentage of monthly growth in Bitcoin holdings among major investors accelerated from -0.25% on January 14 to +2% on January 17, marking the highest monthly rate since mid-December 2024. This surge in demand pushed Bitcoin's price to a new record high of $109,588 on Inauguration Day, January 20. However, the price retreated to $100,000 shortly after Trump's oath of office.

Total Bitcoin whale holdings on Inauguration Day. Source: CryptoQuant

$BTC Meanwhile, U.S. President Donald Trump announced on Truth Social that he issued an unconditional pardon for Ross Ulbricht, the founder of the Silk Road marketplace on the dark web.

U.S. federal authorities arrested Ulbricht in 2013 and sentenced him to life imprisonment for creating and operating a website (Silk Road) that allowed users to buy and sell illegal drugs, along with other illegal products and services. This news boosted confidence within the crypto community, as Trump fulfilled his promise to the sector.

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