Crypto-connected stocks experienced a surge on Monday following the signing of the GENIUS Act by former President Donald Trump, a significant regulatory milestone that bolsters the stature of the crypto industry. The legislation, which targets the regulation of stablecoins, was sanctioned late on Friday and was previously approved by the Senate and the House of Representatives with a 308 to 122 vote.
Ether prices soared to their highest this year, prompting a jump in shares of crypto-related businesses. Bitcoin, the largest cryptocurrency globally, saw a modest 0.2% increase, but it’s still over 3% short of its peak of $123,153 set last week.
The GENIUS Act prohibits the payment of yields or interests on regulated stablecoins. Consequently, Deutsche Bank has linked this to the rise in Ether prices as investors seek alternative yield-generating options in decentralized finance. “Financial institutions, payment processors, and fintech firms will keep purchasing operational Ether to cover transaction fees for the deployment of stablecoins and tokenized assets on the blockchain,” explained Gautam Chhugani, a senior analyst at Bernstein’s global digital assets.
Shares of companies like BitMine, Bit Digital, and SharpLink Gaming, which have recently increased their crypto holdings, also saw a significant rise. Shares of Strategy MSTR, the largest corporate holder of Bitcoin, have surged nearly 3000% since 2020 and rose by 2.2% on Monday.
Furthermore, Ether was traded at $3,816.7 after reaching its peak this year on Sunday. Shares of Coinbase Global and Circle Internet, a stablecoin issuer, also increased by 1.9% and 0.9%, respectively.
Stablecoins, which aim to sustain a consistent value, usually pegged 1:1 to the U.S. dollar, have become increasingly popular amongst crypto traders moving funds between tokens. Large Wall Street banks like Bank of America have also been exploring the possibility of launching their own stablecoins.
Other cryptocurrencies, such as Solana, also saw significant increases, hitting its highest level since February. The ProShares Ultra Solana ETF also rose by 16.6%. The overall crypto sector’s market value reached $4 trillion on Friday, according to data from CoinGecko.
