Ethereum (ETH) has seen a sharp surge recently, outperforming Bitcoin (BTC) with a nearly 6% gain, making it the centerpiece of this week’s crypto market. Driving this rally is the market’s growing focus on the U.S. GENIUS Act, which is viewed as a potential regulatory turning point for stablecoins—particularly those classified as yield-bearing stablecoins.
According to TradingView data, the ETH/BTC trading pair on Binance rose 5.96% as of Tuesday, reaching 0.02670—its best single-day performance since mid-May. In USD terms, ETH also broke past $3,100, hitting a five-month high.
GENIUS Act Could Reshape Stablecoin Ecosystem
The GENIUS Act is considered a key part of the emerging U.S. regulatory framework for stablecoins, with a particular focus on those that promise users fixed returns—so-called yield-bearing stablecoin instruments. If enacted, the bill could significantly alter the current stablecoin landscape.
Markus Thielen, founder of market research firm 10x Research, said Ethereum’s strong performance stems from investors reassessing the potential impact of the act. “If these types of stablecoins are restricted, underlying DeFi protocols could regain attention, and Ethereum—as the core platform—would see its position further solidified.”
One widely discussed stablecoin recently is USDe, issued by Portugal-based Ethena Labs. USDe uses a hedging mechanism involving perpetual contracts to generate returns without directly offering interest, positioning it as a novel workaround to traditional definitions of yield-bearing assets. USDe currently has a market cap of around $5 billion and accounts for 4% of Ethereum’s open interest.
While this structure has placed some selling pressure on ETH futures, Thielen believes the impact may be temporary. Meanwhile, Ethena has proactively submitted documentation to the U.S. Securities and Exchange Commission (SEC), aiming to clarify that USDe is a payment instrument rather than a security—an effort to avoid regulatory uncertainty.
Diverging Views on Regulatory Impact
Currently, USDe is not available to U.S. investors, with most of its funding sourced from overseas. Thus, even if the GENIUS Act is passed, its scope of enforcement remains unclear. However, should Ethena reduce its Ethereum exposure for compliance reasons, ETH prices may see short-term volatility.
Still, the market appears to hold an optimistic outlook. The price of ENA, Ethena’s native token, continues to climb, and ETH’s funding rates have risen in tandem, signaling growing bullish momentum.
According to data from TokenTerminal, Ethena generated nearly $300 million in revenue over the past year—ranking fifth among blockchain protocols, behind only Tether, Ethereum mainnet, Circle, and Solana. In the past month alone, its revenue reached $15 million, underscoring its rapid growth within the stablecoin sector.
Thielen added: “Rising funding rates are drawing in more arbitrage funds, driving higher utilization of Ethena. This trend could also signal a return of institutional capital to ETH and potentially benefit the upcoming spot Ethereum ETF.”
ETH Emerging as a Safe-Haven Asset?
As the pace of stablecoin legislation in the U.S. accelerates, both traditional and emerging investors are reassessing their crypto risk exposure. ETH’s strong performance amid regulatory clarity could position it as a new safe-haven asset—especially in a cycle where DeFi is regaining investor attention.
Reportedly, the GENIUS Act received bipartisan support in the Senate in June and is expected to be put to a full House vote as early as this Thursday. Its outcome could not only reshape the future of the U.S. stablecoin market but also influence DeFi and crypto capital flows globally.