Crypto-Linked Stocks Surge Following Trump’s Signing of Stablecoin Regulation Law
July 21, 2025 — Shares of cryptocurrency-linked companies soared on Monday as the price of ether reached its highest point this year, spurred by President Donald Trump’s recent enactment of a bill regulating stablecoins in the United States. This legislative move has been hailed as a major breakthrough for the crypto industry, which has long advocated for a clear regulatory framework to lend legitimacy and stability to the market.
Trump Signs the GENIUS Act
On Friday, President Trump signed into law the GENIUS Act, a bill aimed at regulating stablecoins—cryptocurrencies designed to maintain a stable value, usually pegged 1:1 to the U.S. dollar. The bill passed the House of Representatives with a 308 to 122 vote after gaining approval from the Senate, signaling strong bipartisan support.
One notable provision of the legislation bans yields or interest payments on regulated stablecoins. According to Deutsche Bank, this restriction is prompting investors to pivot toward other cryptocurrencies, particularly ether (ETH), the world’s second-largest digital currency, as a means of generating returns in decentralized finance (DeFi) markets.
Ether and Crypto Market Rally
Ether’s price responded positively, last trading at approximately $3,795.40, nearing its peak for the year reached on Sunday. The cryptocurrency’s upward movement is interpreted by market analysts as an encouraging sign, although some caution that it is too early to confirm a sustained trend.
Luke Nolan, Senior Research Associate at CoinShares, remarked, “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 are playing into its favor.”
Bitcoin (BTC), the largest cryptocurrency by market capitalization, experienced a more modest increase of 0.4%, trading more than 3% below the record high of $123,153 it touched just last week. Other digital assets showed gains as well; Solana (SOL) climbed to its highest level since February, with the ProShares Ultra Solana ETF (SLON.P) surging by 17.2%. XRP also edged up by 1%, nearing its own record highs.
Stock Market Response
Several companies with significant involvement in cryptocurrency saw their shares increase on Monday. Coinbase Global (COIN.O), a major crypto exchange platform, and Circle Internet Financial (CRCL.N), a leading stablecoin issuer, each edged up by roughly 0.1% in early trading.
Furthermore, firms holding significant ether assets, such as BitMine (BMNR.A)—notably backed by tech investor Peter Thiel and chaired by Fundstrat’s Tom Lee—rose 2.7%. Other ether-focused companies including Bit Digital (BTBT.O), BTCS (BTCS.O), and SharpLink Gaming (SBET.O) experienced gains ranging from 2.3% to 8%.
Corporate interest in cryptocurrency continues to grow, as evidenced by companies like GameStop (GME.N), which is rapidly adding crypto to its balance sheet, following the example of Strategy (MSTR.O), which is the largest corporate holder of bitcoin and whose shares have surged nearly 3,000% since 2020. Strategy’s stock rose 1.7% on Monday.
Additionally, blank-check company Dynamix Corporation (DYNX.O) jumped 26.2% amid news that it will merge with a new crypto venture backed by prominent investors called The Ether Machine, which is focused on ether reserves.
Stablecoins Gain Growing Institutional Attention
Stablecoins have gained massive popularity as tools for crypto traders to move funds between tokens without exiting the digital asset ecosystem. Some leading Wall Street banks, including Bank of America (BAC.N), have shown interest in launching their own stablecoins, signaling growing institutional adoption.
The overall market value of the crypto sector reached $4 trillion last Friday, according to CoinGecko data, reinforcing the increasing significance of digital currencies in global finance.
Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; Editing by Arun Koyyur
Photo Credit: REUTERS/Dado Ruvic/Illustration/File photo
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