Bitwise Predicts Long-Term Crypto Bull Market If U.S. Stablecoin Bill Passes

Bitwise reports that the potential passage of a U.S. stablecoin bill could ignite a prolonged bullish trend across the cryptocurrency market.

Following the Senate’s decision to advance the GENIUS Act toward a final vote, the U.S. may soon enact its first comprehensive crypto regulation this summer. Bitwise regards this as a landmark event, rivaling the January 2024 approval of spot Bitcoin ETFs in significance.

Matt Hougan, Bitwise’s Chief Investment Officer, described the bill’s progress as possibly the most transformative regulatory move in crypto’s history.

Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar or gold—serve as a vital backbone in crypto markets and international money transfers.

The GENIUS Act seeks to establish federal oversight for stablecoins with market caps exceeding $10 billion, while permitting states to impose additional regulations consistent with federal rules. This approach differs from the House’s STABLE Act, which advocates solely for state-level regulation.

Bitwise points out the current lack of an overarching federal regulatory framework for stablecoins and views the GENIUS Act as a critical step toward legal clarity.

If enacted, the legislation could pave the way for a sustained rally in cryptocurrencies beyond Bitcoin, with Ethereum, Solana, and DeFi tokens such as Uniswap and Aave expected to benefit most.

The stablecoin market, presently valued at $245 billion, could rapidly expand to $2.5 trillion, the report forecasts.