Cryptocurrency reached a new peak: Bitcoin's value surpasses $186,000 in breathtaking spike
**Trump's Proposed Digital Asset Stockpile and the GENIUS Act: A New Era for Stablecoins**
In a significant move towards embracing digital assets, Trump Media and Technology Group (TMTG) announced plans to raise $2.5 billion to establish a corporate bitcoin reserve, following President Donald Trump's earlier proposal for the U.S. to become the "crypto capital of the planet." This announcement comes amidst a surge in the price of bitcoin, which surpassed $120,000 for the first time on Sunday, and later reached an all-time high of $122,873 on Monday.
The meteoric rise of bitcoin, which has increased more than 28% since the start of the year, can be traced back to Trump's election win in 2016. The price of bitcoin quickly rose to $100,000, and it took 53 days for the price to reach $120,000 after first surpassing $110,000 on May 21, 2025.
Meanwhile, the Nasdaq and S&P 500 reached new highs in recent weeks, and Nvidia became the first company to reach a $4 trillion market capitalization. The stablecoin market, which accounts for a potential $238 billion, according to CoinDesk, is also experiencing growth, with the GENIUS Act, a federal regulation for stablecoins, aiming to minimize volatility.
The GENIUS Act, passed by the Senate in June 2025, is a landmark U.S. federal legislation that establishes a comprehensive regulatory framework specifically for payment stablecoins. Key provisions of the Act include strict reserve backing, consumer protection, transparency and audits, anti-money laundering and anti-terrorism compliance, licensing framework, and clear issuer accountability.
By enforcing strict reserve backing and transparency, the GENIUS Act aims to significantly reduce the risks of price volatility and insolvency that have previously undermined confidence in crypto assets. Requiring mandatory liquid reserves and independent audits also enhances the assurance that stablecoins can be reliably redeemed at their pegged value, which is critical for their use as a stable medium of exchange.
The Act's combination of consumer protections, clear issuer accountability, and regulatory clarity promotes broader adoption of stablecoins in mainstream finance, helping preserve the U.S. dollar’s role in the evolving digital economy. It therefore represents a major step toward stabilizing and legitimizing the stablecoin market with safeguards designed to prevent the rapid destabilization and loss of confidence seen in past crypto crises.
Notably, GameStop made a $513 million bitcoin purchase in May, demonstrating increased institutional interest in digital assets. As the digital asset landscape continues to evolve, it is clear that regulations like the GENIUS Act will play a crucial role in shaping its future.
Technology plays a significant role in the evolution of digital assets, as the meteoric rise of bitcoin can be attributed to its underlying technology. The GENIUS Act, a federal regulation for stablecoins, aims to minimize volatility in the stablecoin market, contributing to the legitimization of the digital asset market with safeguards designed to prevent rapid destabilization, thus promoting broader adoption of stablecoins in mainstream finance.
