As the crypto world looks ahead to 2025, all eyes are on stablecoin regulation as a key driver for the next big Bitcoin rally. With new U.S. legislation on the horizon, industry experts believe that clear rules for stablecoins could push Bitcoin to new all-time highs and reshape the digital asset landscape.
Bitcoin’s Next Move: Regulatory Clarity as a Catalyst
After a period of price consolidation, Bitcoin is poised for its next phase of growth. According to Alice Li, investment partner and head of U.S. at Foresight Ventures, the main catalyst for this cycle is the evolving regulatory environment in the United States. Li points to the anticipated passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act as a potential game-changer, predicting that it could help propel Bitcoin above $150,000 during this market cycle .
The GENIUS Act aims to set clear standards for stablecoin collateralization and enforce compliance with anti-money laundering laws. This regulatory clarity is expected to boost confidence among both institutional and retail investors, making stablecoins a more attractive long-term investment .
Why Stablecoins Matter for Bitcoin and the Broader Market
Stablecoins—digital tokens pegged to traditional currencies like the U.S. dollar—play a crucial role in the crypto ecosystem. They provide liquidity, facilitate trading, and act as a bridge between fiat and crypto. The GENIUS Act, along with other proposed bills such as the STABLE Act, would require stablecoin issuers to maintain one-to-one reserves, undergo regular audits, and operate under federal or qualified state supervision .
This legal certainty is expected to encourage more banks and businesses to participate in the stablecoin market, further integrating crypto into mainstream finance. In fact, similar regulatory moves are already underway globally, with Europe’s MiCA regulation setting clear rules for stablecoins and Hong Kong passing its own stablecoin bill .
DeFi and Ethereum: Stablecoins Fueling Growth
The impact of stablecoin regulation isn’t limited to Bitcoin. The Ethereum network has seen a resurgence in 2025, driven by increased stablecoin activity and lower transaction fees. Automated trading bots facilitated nearly 5 million stablecoin transfers on Ethereum in May alone, with volumes reaching a record $480 billion. This surge has helped Ethereum’s mainnet regain market share in decentralized finance (DeFi), reversing a trend of users migrating to other blockchains .
Real-World Asset Tokenization on the Rise
Regulatory clarity is also fueling growth in the tokenization of real-world assets (RWAs). The RWA market has grown by over 260% in the first half of 2025, surpassing $23 billion in value. As more financial products move onto the blockchain, clearer rules are attracting major industry players and increasing investor participation .
What’s Next?
With the U.S. Senate preparing to vote on the GENIUS Act, the crypto industry is watching closely. If passed, the legislation could set a global standard for stablecoin regulation, inspiring other countries to follow suit and paving the way for broader adoption of digital assets .
“It has set a great innovation frontier for the rest of the world, and I believe that all the other countries, especially Asian countries, Singapore, and Hong Kong, will quickly follow.”
— Alice Li, Foresight Ventures
As stablecoin rules take shape, Bitcoin and the broader crypto market could be on the verge of a new era—one defined by regulatory clarity, institutional participation, and mainstream acceptance.
