The GENIUS Act has caused a $4 billion surge in the stablecoin market, pushing the total market cap to over $264 billion. This legislation provides clarity for institutional investors, attracting new capital and players to the industry. Even before its enactment, signs of growth were evident.

Stablecoins can be divided into four categories: fiat-backed, crypto-backed, algorithmic, and commodity-backed. Fiat-backed stablecoins like USDT and USDC make up 85% of the market. The GENIUS Act targets these stablecoins, requiring compliant issuers to hold full reserves, undergo audits, and be licensed.

Following the signing of the GENIUS Act, institutions are flocking to the stablecoin market. Anchorage Digital and WisdomTree have launched stablecoin initiatives in compliance with the new regulations. Bank of America, JPMorgan, and Citigroup are also exploring entry into the stablecoin market. The legislation has opened the floodgates for institutional involvement.

Read more at Cointelegraph: Stablecoin market surges post-genius act as banks and asset managers enter