The GENIUS Act, recently enacted, has triggered a significant surge in the crypto industry, adding nearly $4 billion to the stablecoin market cap, which now exceeds $264 billion. The legislation provides a clear federal framework for fiat-backed stablecoins, alleviating the concerns of banks and institutional investors about regulatory enforcement. This has led to an influx of new players and increased competition in the market. Currently, fiat-backed stablecoins, which make up about 85% of the stablecoin market, are the primary focus of the law, requiring issuers to hold full reserves and undergo audits. Major fiat-backed stablecoins like USDt and USD Coin dominate with a combined market cap of over $227 billion. The law has also attracted interest from financial institutions; notable banks like Bank of America are exploring stablecoin offerings. Additionally, firms such as WisdomTree are entering the market with compliant dollar-backed stablecoins. The regulatory clarity provided by the GENIUS Act signals a significant shift in institutional adoption in the ongoing development of stablecoins.

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