The crypto market broke records as its total value surged past $4 trillion. The rally came after President Donald Trump signed the GENIUS Act into law. The act is the first federal legislation to regulate stablecoins. These coins are digital tokens tied to real-world currencies like the U.S. dollar.

The law followed heavy debate in Congress but finally passed with strong support. It now introduces state or federal oversight of dollar-backed stablecoins. Analysts say this law legitimizes a market once seen as fringe and untrustworthy.

Altcoins fueled the surge in the market. Ether rose 20 percent in five days and traded around $3,500. Bitcoin peaked at $123,205 before settling near $117,000. Solana and Uniswap also posted solid gains.

Investors Rush Into Crypto As ETFs Gain Momentum

Crypto ETFs saw strong inflows as traders bet on more mainstream adoption. Bitcoin funds brought in $5.5 billion in July. Ether-based funds pulled $2.9 billion. Traders believe the GENIUS Act could mark a new era for digital assets.Chris Perkins of CoinFund praised the law’s impact. 

“The Genius Act will go down in history as a law that served as a foundational step in mainstreaming of crypto as an asset class,” he said.

Other bills are also in progress. The House passed the Digital Asset Market Clarity Act and the Anti-CBDC Surveillance State Act. These are now waiting for Senate review. Trump said the new law helps reclaim American leadership in crypto and promised more progress.