Cryptocurrencies in transition: GENIUS Act could revolutionize Bitcoin and XRP!

Cryptocurrencies in transition: GENIUS Act could revolutionize Bitcoin and XRP!

Cryptocurrencies are once again in the financial world's focus as major developments in Washington, particularly the GENIUS Act, could have potential implications for Bitcoin and XRP. The GENIUS Act, a proposed law to regulate cryptocurrencies, is a key issue for investors who are closely monitoring market sentiment. Ripple CEO Brad Garlinghouse is actively lobbying for XRP in Washington and trying to gain influence on upcoming decisions. Uncertainty over the GENIUS Act vote is adding to the volatility of the Bitcoin market.

Current numbers show mixed results in the ETF market. The Fidelity Wise Origin Bitcoin Fund (FBTC) recorded net inflows of $188.1 million, while the ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $155.3 million. Of particular note is BlackRock's iShares Bitcoin Trust (IBIT), which has achieved impressive year-to-date net inflows of $8,304.48 million and is now at number six in the ETF rankings after overtaking SPDR Gold Trust (GLD). These developments highlight the ongoing movement in the Bitcoin market.

The GENIUS Act and its influence

The Senate Banking Committee advanced the bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on April 16, 2025 by a vote of 18-6. Sen. Bill Hagerty (R-Tenn.) plays a key role as lead sponsor, supported by co-sponsors including Tim Scott (R-S.C.), Kirsten Gillibrand (D-N.Y.) and others. The aim of the GENIUS Act is to improve consumer protection in the area of ​​payment tabletcoins, which are already available in the US but are subject to little regulatory oversight.

Federal regulation should establish robust reserve requirements to avoid de-pegging and provide transparency about the reserves that support payment tablecoins.

The introduction of the GENIUS Act could have far-reaching consequences for the cryptocurrency landscape. If the law is successfully passed, this could have a positive impact on market sentiment. On the other hand, a failure of the law and ongoing tensions between the US and China could push the Bitcoin price to as much as $90,000. In contrast, positive economic data and steady ETF inflows could push the price above $109,312.

Market forecasts and Bitcoin price development

The short-term development of the Bitcoin price is closely linked to the passage of the GENIUS Act, trade relations between the USA and China and relevant macroeconomic data. Bitcoin prices fell 0.85% to $105,573 on May 19, following a 3.14% rise earlier on Sunday. Such fluctuations highlight the uncertainty associated with upcoming decisions and their impact on the market.

Investors should carefully monitor developments in Washington and ETF market trends to respond to the dynamic changes in the cryptocurrency landscape. Regulation through the GENIUS Act could not only bring stability, but also influence expectations for future innovation opportunities in the digital currency space.