Record-breaking achievement for Bitcoin: Price climbs to $186,000 in extraordinary spike
The GENIUS Act, a federal regulation aimed at enhancing the trustworthiness of stablecoins among investors, has recently been signed into law by President Trump. This legislation, introduced in July 2025, is expected to increase public trust in digital assets and foster industry growth.
### Key Significance for Bitcoin and the Crypto Market
- **Regulatory Clarity and Mainstream Adoption** The GENIUS Act offers clear guidelines specifically for "payment stablecoins," digital assets pegged to fiat currency and designed for payment or settlement use. By defining permitted issuers and requiring robust reserve backing, it ensures stablecoins maintain their promised value stability. This clarity helps reduce uncertainty that has previously hindered broader adoption.
- **Increased Trust and Institutional Involvement** The Act makes it easier for banks and other regulated entities to issue stablecoins, facilitating integration with the traditional financial system. This is expected to boost the legitimacy and acceptance of stablecoins and, by extension, the broader crypto ecosystem, including Bitcoin as a major digital asset class. Stablecoins can serve as an on-ramp/off-ramp to Bitcoin trading, supporting liquidity and usability.
- **Impact Beyond Stablecoins** Although the Act primarily regulates stablecoins, the clearer regulatory environment indirectly benefits Bitcoin and other cryptocurrencies by enhancing overall confidence in digital assets. As stablecoins gain trust and acceptance, more users and institutions might enter the crypto market, increasing Bitcoin’s prominence and utility as a decentralized asset.
- **Precedent for Future Crypto Legislation** The GENIUS Act is part of a global movement toward responsible growth through regulatory oversight. This can drive innovation while protecting users, which is crucial for broader crypto adoption, including Bitcoin.
The crypto market seems unperturbed by President Donald Trump's renewed tariff threats on trading partners. In recent weeks, both the Nasdaq and S&P 500 reached new highs, while Bitcoin's price has surged, reaching an all-time high of $122,873 on Monday and surpassing $120,000 for the first time on Sunday night. Other major crypto tokens, such as Ether and Binance's BNB, have also seen significant surges in the past week.
Trump's proposal to make the U.S. the "crypto capital of the planet" and his announcement of the U.S. establishing a digital asset stockpile similar to its gold reserve, may further boost the legitimacy and acceptance of cryptocurrencies, particularly Bitcoin. Notably, GameStop made a $513 million bitcoin purchase in May, and Trump Media and Technology Group announced it would raise $2.5 billion to establish a corporate bitcoin reserve.
The price of bitcoin recovered in May after falling to a low of just over $75,000 in April. The meteoric rise following Trump's Election Day victory in 2024 is significant, reflecting the growing interest and confidence in Bitcoin and the broader cryptocurrency market. As regulatory clarity continues to improve and institutional involvement increases, the future of Bitcoin and the cryptocurrency market looks promising.
- The GENIUS Act's establishment of guidelines for "payment stablecoins" and the subsequent enforcement of robust reserve backing can potentially increase the trustworthiness of digital assets like Bitcoin, due to the demonstrated maintenance of value stability.
- The prospects of increased institutional involvement in the crypto market, facilitated by the GENIUS Act, could potentially foster the acceptance of major digital assets such as Bitcoin, thus supporting their prominence and utility as decentralized assets.
