4 Crypto-Linked Stocks to Watch as the GENIUS Act Passes & the Stablecoin Market Ignites

The U.S. Congress has passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on July 17, 2025, a landmark bill creating the first federal regulatory framework for stablecoins. 

This bipartisan legislation sailed through the House by a 308–122 vote and cleared the Senate in June with a 68–30 vote. Its passage marks a watershed moment for the crypto industry, which has long sought clear rules for digital assets. 

By introducing robust requirements and oversight for stablecoin issuers, the GENIUS Act is expected to legitimize stablecoins and integrate them into mainstream finance in unprecedented ways.

This article explains what the GENIUS Act entails and why it matters. It also highlights four publicly traded crypto or fintech companies poised to benefit from this new era of stablecoin regulation.

With stablecoins finally gaining legal clarity in the U.S., these companies could see significant growth opportunities. Let’s dive in.

What is the GENIUS Act? 

GENIUS ACT is a historic U.S. law that establishes nationwide rules for issuing and managing payment stablecoins (digital tokens pegged to fiat currency like the dollar). 

After some political drama, lawmakers passed the GENIUS Act as a standalone bill (separate from broader crypto measures like the CLARITY Act or Anti-CBDC Act). It’s the first major crypto legislation ever passed by Congress, now awaiting the President’s signature to become law. This law aims to bring stablecoins out of the regulatory gray zone, making the $250+ billion stablecoin market a formally regulated part of the financial system.

But how did it pass? 

Let’s find out.

• The Senate approved the GENIUS Act in mid-June with rare bipartisan support (68–30), and the House followed suit on July 17 with an overwhelming 308–122 vote.
• Both parties found common ground on the need to protect stablecoin users and keep innovation onshore.
• The Act’s strong bipartisan backing underscores its significance: it is set to be the first crypto-related law in U.S. history, a “huge win” for an industry that has pushed for federal clarity for years.

4 Crypto Stocks to Watch as the GENIUS Act Transforms Stablecoin Regulation

With stablecoins entering the regulated mainstream, several public companies are well-positioned to benefit. Here are four key players to watch:

1. Circle Internet Financial (CRCL)

Circle is the principal issuer of USDC and went public on on June 5, 2025. The GENIUS Act validates the company’s business model, which already features:

• 1:1 reserve backing with U.S. Treasurys and cash.
• Monthly reserve attestations.
• Regulatory compliance practices.

Roughly 98% of Circle’s revenue comes from interest on USDC reserves. As USDC’s market share grows under this new legal framework, Circle’s profitability could rise in tandem.

2. Coinbase Global (COIN)

Coinbase is one of the largest cryptocurrency exchanges in the world. Also, it originally co-founded the USDC stablecoin in partnership with Circle through the Centre Consortium.

However, as of July 2023, Circle assumed full control of USDC’s issuance and governance, becoming its sole issuer. This change marked the end of the Centre Consortium and clarified Circle’s regulatory and operational responsibility over USDC. The company earns significant revenue from:

• Interest on USDC reserves.
• Trading fees from USDC transactions.
• Crypto custody services.

Coinbase (COIN) surged to a new all-time high of $444.64 on July 18, boosted by optimism around U.S. crypto legislation progress.

As regulation boosts public trust in stablecoins, USDC adoption is likely to rise, hopefully increasing Coinbase’s revenue and platform activity. The GENIUS Act enhances Coinbase’s long-standing advantage in compliant stablecoins.

3. Robinhood Markets (HOOD)

Robinhood’s crypto trading platform supports stablecoins and could see increased use now that these assets are federally regulated. Stablecoins are often used as an entry point for new users entering crypto, and Robinhood’s mobile-first platform could benefit from:

• Higher trading volumes
• Stablecoin-based yield features
• Reduced friction for deposits and withdrawals

Robinhood (HOOD) reached a new ATH of $113.44, following the recent rollout of its tokenized stock offerings, despite some pushback from major tech firms. It has also launched a Web3 wallet, positioning itself to tap into broader stablecoin use in decentralized applications.

4. PayPal Holdings (PYPL)

PayPal launched its own stablecoin (PYUSD) in 2023 and is uniquely positioned to integrate it across its massive network. With GENIUS Act clarity, PayPal can:

• Roll out PYUSD for global retail payments and merchant settlements.
• Lower transaction costs.
• Compete more effectively in cross-border transfers.

The company is already working to ensure interoperability of PYUSD across wallets and blockchains. Regulation now gives it the freedom to scale without legal uncertainty.

Key Requirements for Stablecoin Issuers Under the GENIUS Act

The GENIUS Act establishes robust federal oversight for any company issuing stablecoins in the U.S., whether bank or non-bank. These requirements are intended to ensure stablecoins are safe, transparent, and fully backed. Here are the three core pillars of the legislation:

1. Full 1:1 Reserve Backing

Under the new law, every dollar-backed stablecoin must be backed 1:1 by high-quality liquid reserves. That means for every $1 of stablecoin in circulation, there must be $1 worth of reserves held in permissible assets. These include:

• U.S. currency.
• Insured bank deposits.
• Short-term U.S. Treasury bills.
• Similar cash-equivalent assets.

This rule is designed to protect consumers by guaranteeing that all issued stablecoins are fully redeemable on demand, thereby preventing the kind of collapses that plagued some unregulated or algorithmic stablecoins in the past.

2. Transparent Reserves and Audits

To maintain accountability, issuers must publicly disclose their reserve holdings on a monthly basis. These disclosures must:

• Specify the composition of reserves (e.g., percentage in cash vs. Treasurys).
• Be certified by senior executives.
• Be subject to independent third-party audits.

Larger issuers are also required to publish annual audited financial statements. These transparency requirements place stablecoin issuers on par with money market funds and public companies in terms of disclosure, addressing long-standing concerns around opaque reserve practices.

3. Federal Oversight and Licensing

The GENIUS Act puts stablecoin issuers directly under federal regulatory supervision. Both traditional banks and non-bank companies can issue stablecoins, but they must obtain federal approval and meet prudential standards.

• Non-bank issuers will be supervised by agencies like the Office of the Comptroller of the Currency (OCC).
• Bank issuers will remain under the oversight of their existing regulators.

Regulators will conduct regular examinations to monitor compliance with capital adequacy, liquidity management, cybersecurity, and risk controls. Issuers are also subject to the Bank Secrecy Act, meaning they must implement robust anti-money-laundering (AML) and Know-Your-Customer (KYC) programs.

Additional Provisions

The Act also includes other safeguards and structural elements:

• No interest may be paid on stablecoin balances, to prevent stablecoins from competing directly with deposit accounts at banks.
• Smaller or regional issuers may operate under equivalent state frameworks.
• The law also sets standards for foreign stablecoins operating in the U.S. market.

Altogether, the GENIUS Act brings stablecoins firmly under the umbrella of traditional financial regulation, aiming to ensure that they serve as a safe, efficient, and trusted form of digital money.

From the “Wild West” to the Mainstream?

Supporters of the GENIUS Act argue that this framework is long overdue and that it will transform how stablecoins are used in both the crypto ecosystem and the broader financial system.

With full dollar backing, transparent audits, and regulatory clarity, stablecoins can now serve as a legitimate digital dollar. This significantly reduces the risk of failure or loss of value and makes them more appealing for widespread use in:

• Retail payments
• Cross-border remittances
• E-commerce
• Merchant settlements

Major banks, payment processors, and even tech companies may now enter the stablecoin space confidently, something they were previously hesitant to do due to legal uncertainty.

Reportedly, firms like Amazon, Bank of America, Citibank and other large institutions were already considering stablecoin projects in anticipation of federal rules.

Broader Implications of the Stablecoin Boom

Stablecoins also hold promise for reforming digital payments by offering faster, cheaper, and more secure transactions. Compared to credit card networks and ACH systems, stablecoin payments:

• Can settle instantly (24/7/365).
• Avoid costly intermediary fees.
• Reduce fraud and chargeback risk.

This is a major opportunity for merchants, payment processors, and fintech platforms. Analysts have described stablecoins as the potential “money rail of the internet,” opening the door to new business models for digital commerce.

Companies like Visa, Mastercard, Stripe, and PayPal are already integrating stablecoins into their systems. The GENIUS Act gives these efforts a clear legal basis and is likely to accelerate adoption across sectors.

Additionally, regulated stablecoins could deepen connections between crypto and traditional financial markets. Many issuers already hold substantial positions in U.S. Treasurys (currently exceeding $160 billion).

Growth in this market may support Treasury demand and integrate crypto liquidity into existing money markets, a shift that institutional investors and policymakers are watching closely.

Conclusion

The GENIUS Act delivers something the crypto industry  and especially stablecoin issuers have long awaited: clear, consistent federal regulation.

With its focus on full reserves, transparency, and oversight, the Act addresses the most common concerns about stablecoins while giving the green light to future innovation.

From payment platforms to crypto exchanges and fintechs, many companies now stand to benefit as stablecoins become part of the regulated economy.

As this new digital dollar infrastructure takes shape, informed investors and businesses alike will be watching these trends  and the companies leading them very closely.

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About the Author

Onkar Singh

Onkar Singh has three years of experience as a digital finance content creator. Throughout his career, he has collaborated with various DeFi projects and crypto media outlets. In his leisure time, he enjoys fitness activities at the gym and watching movies across different genres. Balancing his professional and personal interests, Onkar continues to contribute to the digital finance landscape while pursuing his hobbies.

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