Stablecoin Frenzy: GENIUS Act Propels Market to $272B Amid Institutional Surge and Record Google Searches

Interest in stablecoins has skyrocketed in 2025, with Google searches for the term hitting an all-time high amid explosive market growth and new U.S. regulation. The catalyst? The recent passage of the Guiding and Empowering Nation’s Innovation for US Stablecoins (GENIUS) Act, which is reshaping the future of digital finance.

Signed into law by President Trump on July 18, the GENIUS Act provides the first comprehensive federal framework for regulating stablecoins—cryptocurrencies pegged to fiat currencies like the U.S. dollar. This legislative clarity has emboldened institutions and triggered a surge in both stablecoin issuance and public interest.

According to Google Trends, searches for “stablecoins” spiked significantly in mid-July, surpassing previous peaks set during the 2022 Terra (USTC) collapse. Crypto analyst “The DeFi Investor” noted that “stablecoins are the product that can onboard the first billion people on-chain,” signaling growing awareness of their practical utility.

GENIUS Act Spurs Regulatory Confidence and Institutional Adoption

The GENIUS Act mandates that stablecoins be backed 1:1 with high-quality liquid assets like U.S. Treasurys, and restricts issuers to regulated entities. It also shifts oversight to the Office of the Comptroller of the Currency (OCC) and the Treasury Department, exempting stablecoins from being treated as securities or commodities.

In response, institutions have moved swiftly. Anchorage Digital Bank has launched USDtb, the first stablecoin fully compliant with the GENIUS framework, and major players like Coinbase, Meta, and Visa are accelerating their adoption strategies.

Market Hits $272B as Stablecoins Prove Key to Crypto Utility

As of July, the total market capitalization for stablecoins hit $272 billion, marking a record high and accounting for 7% of the overall crypto market, according to CoinGecko. Around 98% of these are dollar-pegged, with Tether (USDT) dominating at 60% market share.

Transaction volume is also surging. Bitwise reported unprecedented usage across retail and institutional channels, highlighting stablecoins’ increasing role in payment systems, remittances, and decentralized finance (DeFi).

Stablecoins Seen as Safe Havens Amid Market Volatility

Beyond speculation, analysts view stablecoins as practical tools for managing risk. Nassar Al Achkar of CoinW notes their growing use as a hedge against crypto market volatility and for cross-border transactions.

He adds that more institutions are preparing to launch their own stablecoins to meet investor demand while ensuring compliance under the new law. As crypto matures, these developments mark stablecoins as a bridge to broader financial integration.

With the GENIUS Act paving the way, stablecoins are no longer just crypto novelties—they’re becoming the backbone of a regulated, digital financial future.