Share this article
U.S. Stablecoin Bill Approval Could Trigger a Long-Term Crypto Bull Market: Bitwise
The passage of a U.S. stablecoin bill could be one of the most important regulatory developments in the history of crypto, the report said.
May 22, 2025, 12:55 p.m.
Make us preferred on Google
What to know:
- Passage of stablecoin legislation in the U.S. could lead to a long-term crypto bull market, the report said.
- Bitwise said this could be one of the most important regulatory developments in the history of crypto.
- The biggest beneficiaries could be ether, solana, uniswap and aave, the asset manager said.
Progress on the stablecoin bill in the U.S. could lead to a multi-year crypto bull market, asset manager Bitwise said in a report Tuesday.
The Senate agreed to advance the GENIUS Act to a final vote on Monday, the report noted, which means that the U.S. could pass its first piece of crypto legislation this summer.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"Outside of the January 2024 approval of spot bitcoin ETFs, this is the most important regulatory development in the history of crypto. It may even be bigger," wrote Matt Hougan, chief investment officer at Bitwise.
Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets and are also used to transfer money internationally.
The Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates federal regulation for stablecoins with a market cap of over $10 billion with the potential for state regulation if it aligns with federal rules. The House of Representatives' STABLE Act calls for state regulation without any conditions.
Bitwise noted that stablecoin issuers have to follow a number of regulations but there is no "overarching federal framework." The GENIUS Act provides that regulatory framework.
Once approved, this could set the stage for a long-term rally in crypto assets other than just bitcoin , Bitwise said, and the biggest potential beneficiaries are ether {{ETH}}, solana {{SOL}} and decentralized finance (DeFi) assets such as uniswap {{UNI}} and aave .
The stablecoin market could reach $2.5 trillion in size in no time, from $245 billion currently, the report added.
Read more: Stablecoins to Go Mainstream in 2025 After U.S. Regulatory Progress: Deutsche Bank
Mais para você
Small investors are buying bitcoin. For a rally to succeed, the whales need to join in.
Small wallets have increased their BTC holdings by 2.5% since October's all-time high while large holders trimmed 0.8%, Santiment data shows.
O que saber:
- Bitcoin wallets holding less than 0.1 BTC have increased their share of supply to the highest since mid-2024 even as the price holds around the mid-$60,000s.
- Larger holders with 10 to 10,000 bitcoins — the whales and sharks that typically drive major moves — have reduced their positions since the October peak.
- The divergence supports choppy, fragile price action because retail demand alone cannot sustain rallies when big wallets are distributing into every recovery.
Top Stories
