The Stablecoin Summer is heating up

This summer has already been dubbed "Stablecoin Summer" signifying a transformative season for the $250 bln+ stablecoin market.

On July 18, 2025, the GENIUS Act, the most advanced U.S. stablecoin legislation to date, was signed into law by President Donald J. Trump, marking a breakthrough moment for the crypto industry.

US moves closer to clarity

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) introduces a federal framework for stablecoin issuers, mandating 1:1 reserves in cash or short-term Treasuries, clear audit trails and AML/KYC compliance. Issuers would also have the option to register at either the federal or state level in a crucial compromise that helped the bill clear the Senate with bipartisan support.

Stablecoins in the spotlight

With over $120 bln in outstanding U.S. dollar-pegged stablecoins, the sector now accounts for the majority of transactional volume across many crypto platforms. Meanwhile, already in 2024, the total global amount of stablecoin transactions surpassed the combined payment volumes of Visa and Mastercard. 

From on-chain payments to remittances and decentralized finance (DeFi), stablecoins have become the lifeblood of crypto markets - yet they've long operated in a regulatory gray zone.

What makes this summer different is the momentum. A confluence of regulatory progress, institutional interest and macroeconomic relevance has propelled stablecoins to the center of the policy debate. The GENIUS Act’s passage could pave the way for greater adoption among banks, fintechs and public companies seeking dollar-denominated on-chain solutions.

Institutional readiness

While the retail crypto crowd has relied on stablecoins for years, traditional financial institutions are now preparing to follow suit. Several major US banks are already exploring stablecoin issuance and tokenized cash settlements. However, many have been waiting on regulatory clarity, which the GENIUS Act is set to provide.

Stablecoin issuers like Circle and Paxos, already working under limited state charters, will benefit immensely from a unified national standard. This could also open the door for new entrants - particularly payment companies and neobanks eager to compete in the programmable money space.

A new financial chapter?

Stablecoin Summer isn't just a metaphor - it may be the start of a new financial chapter. With the GENIUS Act adopted, stablecoins are poised to evolve from crypto-native tools to global financial infrastructure. What once was an experimental niche may soon become a regulated pillar of modern finance.

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