Crypto-Linked Stocks Surge Following Trump’s Signing of Stablecoin Regulation
By Shashwat Chauhan
July 21, 2025
Shares of companies linked to cryptocurrencies surged on Monday, buoyed by a significant boost in ether prices after former U.S. President Donald Trump signed into law a bill regulating stablecoins. The legislation, named the GENIUS Act, marks a milestone victory for the cryptocurrency industry, which has long sought clear regulatory guidelines to enhance legitimacy and investor confidence.
Stablecoin Regulation: A Historic Step
Trump signed the GENIUS Act late Friday, following its overwhelming passage in the House of Representatives with a 308-122 vote and prior approval from the Senate. The bill introduces regulations that notably prohibit yields or interest payments on regulated stablecoins, a move anticipated to reshape the decentralized finance (DeFi) landscape.
Stablecoins, designed to maintain a stable 1:1 peg with the U.S. dollar, have seen explosive growth due to their critical role in facilitating crypto trading and transfers. With Wall Street banks like Bank of America actively pursuing their own stablecoin initiatives, regulatory clarity is viewed as a key driver for widespread adoption.
Impact on Cryptocurrency Markets
The passage of the bill triggered a rally in crypto markets, particularly benefiting ether (ETH), the world’s second-largest cryptocurrency by market capitalization. Ether prices climbed close to their highest point this year, last trading at around $3,795.4 as of Monday. This surge is partly interpreted as investors rotating capital toward ether as an alternative source of yield in DeFi platforms, which until now had been fueled largely by returns from stablecoins.
Luke Nolan, Senior Research Associate at CoinShares, commented, “It has been a long-awaited moment for Ethereum, and although it’s too early to be fully convinced of a longer-term trend shift, the confluence of factors is playing into its favor.”
In contrast, Bitcoin edged up modestly by 0.4%, still remaining over 3% below its recent all-time high of $123,153 reached last week.
Gains Across the Crypto-Linked Stock Spectrum
Publicly traded crypto-linked companies enjoyed gains in early trading on Monday. Coinbase Global, a leading cryptocurrency exchange, and Circle Internet, a major stablecoin issuer, both saw modest upticks of roughly 0.1%.
Other crypto holdings demonstrated stronger momentum. Shares in BitMine, whose top investor is tech billionaire Peter Thiel and chaired by Fundstrat’s Tom Lee, rose 2.7%. Ether holding firms such as Bit Digital, BTCS, and SharpLink Gaming also advanced between 2.3% and 8%.
Corporate interest in crypto continues to accelerate with companies like GameStop adding digital assets to their balance sheets, following pioneers like MicroStrategy. MicroStrategy’s shares have surged nearly 3,000% since 2020 and rose 1.7% on Monday.
Further, blank-check firm Dynamix Corporation jumped 26.2% amid news of a merger with The Ether Reserve, a crypto venture backed by prominent investors, to establish “The Ether Machine.”
Other Cryptocurrencies Rally
The positive sentiment was not limited to ether and Bitcoin. Solana (SOL) surged to its highest level since February, and the ProShares Ultra Solana ETF soared 17.2%. XRP also gained approximately 1%, trading near its record highs. Overall, the broader cryptocurrency market recently achieved a valuation near $4 trillion, signifying sustained investor enthusiasm.
With the GENIUS Act’s enactment, the U.S. takes a pivotal step towards formalizing stablecoin regulation, which analysts believe could catalyze further adoption and capital inflows into digital assets. As the industry adapts to the new rules, market watchers will closely monitor the long-term effects on prices, innovation, and financial services integration.
Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; Editing by Arun Koyyur