The U.S. House of Representatives passed the GENIUS Act on July 17, 2025, sending it to President Trump’s desk, where it is expected to be signed into law. This landmark legislation establishes the very first comprehensive federal framework for U.S. dollar-pegged stablecoins, placing them under the oversight of the Commodity Futures Trading Commission (“CFTC”). The bill also sets in motion new rules governing issuers, reserves and consumer disclosure, signaling a major regulatory shift.

By mandating that stablecoin issuers should back every digital token one-to-one with U.S. dollars, Treasury deposits, or short-term Treasuries, the law aims to put an end to opaque reserve practices. These assets will need to be stored in segregated accounts, undergo regular audits and submit monthly disclosures. Consequently, shares of Galaxy Digital (GLXY Quick QuoteGLXY - Free Report) , Robinhood Markets, Inc. (HOOD Quick QuoteHOOD - Free Report) and Riot Platforms, Inc. (RIOT Quick QuoteRIOT - Free Report) jumped on broader positive momentum in the stablecoin segment.

Additionally, the Act extends U.S. jurisdiction to foreign issuers offering stablecoins to American users and prohibits algorithmic stablecoins from qualifying as "payment stablecoins." Traditional financial institutions already have some skin in the game as well. JPMorgan, Bank of America, Citi, Walmart and Amazon have reportedly begun exploring stablecoin issuance to reduce transaction costs, sparking a surge of institutional momentum.

At the same time, voices of caution highlight that the Act stops short of offering FDIC protection to stablecoin holders and caps stablecoin issuers from paying interest directly. This nuance may introduce new fee layers and redemption risks even under tighter oversight.

In essence, the GENIUS Act brings transformative clarity to stablecoin markets. It lays the groundwork for mainstream adoption, reduces regulatory uncertainty and positions the United States to lead in digital payment systems. But as regulators move quickly, stakeholders across the industry will be watching with a keen eye, ready to adapt to the operational and compliance demands ahead.

The reaction in crypto markets was swift. Bitcoin (BTC) and Ethereum (ETH) have held onto near-record highs, while shares of crypto-exposed firms jumped following the House vote. Analysts attribute this surge to a newly found sense of clarity. Institutional and retail investors now have a defined set of rules to follow. A few of them, the ones listed below, must be closely watched for further developments in the sector.

Galaxy Digital engages in the digital asset and blockchain businesses. It provides institutional custody, staking services and asset management aligned with compliant stablecoin frameworks. The Zacks Consensus Estimate for its current-year earnings has improved 69.3% over the past 60 days. GLXY is a Rank #3 (Hold) company. Its stock soared 6.9% on the passage of the Act. You can see the complete list of today’s Zacks #1 Rank (Strong Buy)  stocks here.

Robinhood Markets is a financial services platform. It gained 2.1% post bill passage due to its crypto trading exposure, though stablecoins aren't its core business The Zacks Consensus Estimate for its current-year earnings has improved 7.4% over the past 60 days. HOOD is a Rank #1 company. Its stock soared 6.9% on the passage of the Act.

Riot Platforms is a Bitcoin mining and engineering company. Its stock jumped 6.1% on the news, riding broader crypto optimism tied to anticipated broader crypto legislation. The Zacks Consensus Estimate for its current-year earnings has improved 2% over the past 60 days. RIOT is a Rank #3 company.