The U.S. House of Representatives recently passed the GENIUS Act, a landmark bill establishing a regulatory framework for U.S. dollar-pegged stablecoins. Signed into law by President Donald Trump on July 18, 2025, this legislation mandates that stablecoin issuers maintain liquid reserves, such as U.S. dollars or Treasury bills, and disclose holdings monthly. This move is expected to enhance consumer trust and drive stablecoin adoption for everyday payments, potentially growing the $260 billion market to $2 trillion by 2028, according to Standard Chartered estimates.
The bill’s passage has sparked optimism in crypto markets, with crypto-related stocks like Coinbase and Circle seeing significant gains. Ether, the second-largest cryptocurrency, climbed 2% to $3,506.48, hitting a six-month high, as investors anticipate its role in decentralized finance amid stablecoin restrictions on yield generation.
Notably, the Terra Classic (LUNC) ecosystem stands to benefit significantly. LUNC, tied to the Terra blockchain, has faced challenges since the 2022 TerraUSD collapse, which wiped out $40 billion in value. However, the new regulatory clarity could bolster confidence in stablecoin ecosystems, indirectly supporting LUNC’s recovery. With stablecoins gaining legitimacy, platforms like Terra Classic may see increased activity, as investors and developers leverage its infrastructure for stablecoin-based applications. LUNC’s price has shown positive momentum, reflecting market enthusiasm for regulated digital assets.
While critics, including some Democrats, argue the bill lacks robust anti-money laundering protections and favors corporate interests, the bipartisan support (308-122 House vote) signals a shift toward mainstream crypto adoption. For LUNC, this regulatory milestone could mark a turning point, fostering growth and stability in its ecosystem.