The U.S. House of Representatives on Thursday passed a bill to create a regulatory framework for U.S.-dollar-pegged cryptocurrency tokens known as stablecoins, sending the bill to President Donald Trump, who is expected to sign it into law.
The vote marks a watershed moment for the digital asset industry, which has been pushing for federal legislation for years and poured money into last year’s elections in order to promote pro-crypto candidates.
Shares of crypto-related companies were mostly higher after passage of the bill, dubbed the Genius Act, that would expand the Commodity Futures Trading Commission’s oversight of the industry.
Bitcoin, the largest crypto currency, was down 0.54 per cent at $119,298.87, trading near a record high reached earlier this week. Rival ethereum rose 1.42 per cent to $3,429.47.
COMMENTS
STEVE SOSNICK, CHIEF STRATEGIST, INTERACTIVE BROKERS, CONNECTICUT:
“We had already run up over the past week-plus in anticipation of “crypto week”, so a certain level of expectation was already built in. At least we’re not seeing a “sell the news” reaction, perhaps because traders remain hopeful about all the legislation gets passed.”
JAKE DOLLARHIDE, CHIEF EXECUTIVE OFFICER, LONGBOW ASSET MANAGEMENT, TULSA, OKLAHOMA:
“The crypto stocks have been on a run leading up to this hopeful outcome, and they got exactly what they wanted. The Trump administration said they were going to be a champion for the crypto industry, and this is a huge step in that direction. I look for bitcoin to make new highs from here. I look for Ethereum… to make a rebound. Crypto is going to have a moment in the weeks and months ahead as people who have missed out pile in and chase bigger returns.”
“Regarding the late trimming of gains in crypto-related shares, he said: “We assumed five days ago it was going to happen. So there’s not really a reason to rally. So, it’s a relief pause.”
BILL STRAZZULLO, CHIEF MARKET STRATEGIST, BELL CURVE TRADING, BOSTON:
“I think [this bill] is positive in the sense that you’d want to have some infrastructure and some regulation. That invites a much broader audience to participate. So, I think it’s a positive. But when you look at the correlation of crypto to the S&P 500, it’s very high. In order words, people are buying crypto; because I hear this all the time: ‘I wanted to diversify my portfolio, it’s a hedge against inflation if the bottom falls out on the economy.’ No! With crypto, I think the correlation is up around 90 per cent or something and it moves with the S&P 500. I mean when you buy something you need to know what you really own. And with crypto, you are basically just increasing your exposure to the stock market. You need to know that. This notion that it’s going to be kind of countertrend or countercyclical or not correlated, that’s just not factual. So, I think any regulation and any structure is good because it gives the general public more confidence that it’s not a scam and they’d be protected in some way. That’s a positive thing for sure. But if you were thinking that buying crypto is some way going to be a magic bullet that hedges you against inflation or geopolitical or market downturn, it’s not. That’s why the short-term momentum is positive. I don’t want to go overboard with crypto either because I still think the [stock] market somewhere around here is going to end up putting a top in. My guess is that as we get closer to the midterms, there’s some sort of significant move lower and I don’t think crypto will protect you from any of that.”
ANDREW FORSON, PRESIDENT, DEFI TECHNOLOGIES (by email):
“It signals the start of a new era for digital assets and public companies. We’re seeing an unprecedented wave of corporations embracing digital assets, diversifying beyond Bitcoin into Ethereum, Solana, and more. But for many institutions, education gaps and regulatory uncertainty have been real barriers.”
“By establishing clear, actionable rules for stablecoins and digital assets, the Genius Act unlocks broader adoption by traditional institutions and brings much-needed trust and transparency to the sector. This paves the way for compliant, bank-backed digital money and new solutions for corporate treasuries, helping to bridge the gap between innovation and investor protection.”
DANTE DISPARTE, CHIEF STRATEGY OFFICER, CIRCLE, NEW YORK:
“The House vote to clear the GENIUS Act for the President’s signature is a defining moment for the future of money and the internet financial system. It signals strong bipartisan support for responsible innovation and sends a clear message that the U.S. will lead in the regulation of dollar-backed payment stablecoins. We commend Congressional leaders for delivering a regulatory foundation that puts consumer protection, financial integrity, and U.S. competitiveness at the forefront.”
SUMMER MERSINGER, CEO, BLOCKCHAIN ASSOCIATION (press release):
“The bipartisan passage of the GENIUS Act is a watershed moment for digital assets in the United States. For the first time, Congress has moved comprehensive legislation that provides enforceable, tailored rules for stablecoins — a foundational technology for the future of finance. This marks real momentum toward regulatory clarity that protects consumers, supports innovation, and reinforces the strength of the U.S. dollar in the digital economy. We now call on President Trump to swiftly sign the bill into law, ensuring that the United States continues to lead in shaping the global standards for digital assets.”
MICHAEL JAMES, EQUITY SALES TRADER, ROSENBLATT SECURITIES, LOS ANGELES:
“Crypto stocks have been strong the past two days in expectation that the bill, which didn’t pass on Tuesday, would eventually get the necessary votes to pass, which it has done this afternoon. That is part of the reason that crypto stocks have been outperformers in the last two days.”
(Compiled by the Global Finance & Markets Breaking News team)
