GENIUS Act Clarifies Rules, Ethereum Rally Boosts Altcoins
The GENIUS Act, signed on July 18, introduces the first federal stablecoin regulation by setting clear reserve requirements, consumer protections and AML standards.
The GENIUS Act also provides tax incentives and distinguishes token types to support DeFi innovation. It clarifies crypto regulations for digital assets. Meanwhile, the House passed the CLARITY Act, exempting non-custodial DeFi activities from registration, though gaps remain for derivatives protocols and state pre-emption.
This regulatory clarity bolstered market confidence, driving total crypto market cap above $4 trillion. At the same time, Ethereum surged over 30% as traders anticipate its Shanghai upgrade and ETH hit multi-month highs. Analysts now recommend top altcoins based on strong fundamentals, including Polygon (MATIC) for Layer-2 scalability, Solana (SOL) for high-speed transactions and Avalanche (AVAX) for DeFi growth. Bitcoin (BTC) retains about 45% market dominance, making dollar-cost averaging a solid strategy amid continued bullish momentum.
Bullish
The news is bullish for the cryptocurrency market. In the short term, the GENIUS Act’s first federal stablecoin framework and the CLARITY Act’s DeFi exemptions reduce regulatory uncertainty, encouraging institutions and traders to increase exposure. Simultaneously, Ethereum’s 30% rally ahead of its Shanghai upgrade signals strong on-chain demand and positive sentiment, which often spills over into altcoins like MATIC, SOL and AVAX. Over the long term, clearer crypto regulations and tax incentives can attract more institutional capital, support DeFi growth and sustain market expansion. Bitcoin’s 45% dominance also underpins a solid base for dollar-cost averaging strategies, reinforcing continued upward momentum.