From $14B Mirage to $300B Reality: The Rise of the Regulated Stablecoin

The memecoin gold rush just hit a wall. Donald Trump’s own cryptocurrency, which peaked at $14 billion, has cratered to roughly $1 billion. As speculative bubbles burst, the crypto industry is pivoting toward a more boring, yet far more valuable asset: the stablecoin.

The GENIUS Act: Changing the Rules of the Game

The wild west days of crypto are fading. In July 2024, the US House passed the GENIUS Act, the nation's first crypto-specific legislation. This law forces issuers to back their coins one-to-one with low-risk assets like government bonds. According to WIRED, this regulatory clarity has triggered a massive capital shift.

While Pump.Fun—the memecoin launchpad—saw its revenue drop to a tenth of its January peak, stablecoins are thriving. The total value in circulation has jumped from $250 billion to over $300 billion since the act’s passing. Treasury Secretary Scott Bessent predicts the market could eventually reach $2 trillion.

Traditional Finance Joins the Fray

Wall Street isn't sitting on the sidelines. Visa told Reuters that the GENIUS Act changed everything, allowing them to pilot cross-border payments using stablecoins. Mastercard and Klarna have already launched their own initiatives, and a consortium of banks including Bank of America is exploring a joint coin.