Also known as the act of genius, “Guidelines and Establishment of National Innovation for the 2025 US Stubcoin,” may pave the way for yet another boom in cryptography.
Also, can you write about the surge in venture capital investments in the Stablecoin space?
A new era of Stablecoin Treasuries?
Passed in July 2025, Genius provides a framework for greater adoption of Stablecoins. Stubcoin could also become the rail of the Cambrian explosion for new cryptographic applications.
That’s because instead of relying on old, slow and paid payment banking rails, stubcoins are new, faster and cheaper.
But it is a new realm and there are risks. However, the future appears to be bright for Stubcoin.
“We’re looking forward to seeing you in the future,” said David Mort, Coinbase’s early investor and general partner at Propel VC. “We could see stable Treasury and gradual growth of sediment over the next five years.”
Market capitalization for total security after 2018. Source: Defilama
According to Defillama, Stablecoins’ total market capitalization is currently at $272 billion. Tether dominates the space with a market capitalization of $165 billion, followed by Circle’s USDC of $67 billion and Ethena of $11 billion.
So, now that companies have US regulatory rails for them to ride, there is probably an even more market capitalization on Stablecoin.
“The Genius Act provides regulatory stability for underlying payments Rails, which unlocks innovators to focus on building that great user experience,” says Artem Gordadze, an angel investor at the foundation, close to the foundation of Startup Accelerator Techstars.
Fresh rails and many new assets
There is a rush to issue new Stablecoins, but this appears to happen almost every day. This is especially from brand names like Bank of America.
The Genius Act requires that payment stability be supported by high quality, low-risk assets such as Federal Reserve cash, Treasury bills, or reserves.
That’s all banks are good at. However, not all Stablecoins are equal.
Basic trading stable coins like Esena are excluded and could face restrictions and de facto bans. It became Ecena and was able to develop concrete plans for potential new products to suit the US market.
The problem is that banks move more slowly than the startup can.
Moreover, Stablecoins are just part of what users can adopt. Reducing the complexity of the blockchain for end users becomes a critical component.
“When it comes to the next generation of consumer web3 apps, you’re more likely to catch the next app that looks more traditional but works on fresh rails,” added Propel’s Mort.
Mort’s “fresh rail” refers to using blockchain to promote things that banks and fintechs have not been involved in financial applications in the past.
New ideas and other financial products around Stablecoins
The new consumer app will soon offer micropayments, cross-border transactions, and more crypto-native elements such as swapping, chain lending, and staking.
David Alexander II, partner at Crypto VC Firm Anagram, said it’s only a matter of time.
“The founders now have a concrete framework to build, so I think strong ideas that were previously on the sidelines are beginning to emerge,” said Alexander II. The rise of artificial intelligence within Web3 apps should also be considered. “The most compelling investment paper is likely to be a consumer app that uses AI to provide a more seamless and intelligent Web3 experience,” said Angel investor Goldase.
In fact, if you want your Web3 app to work like Web2, but want to provide more powerful features at the low cost of blockchain, AI implementations may be standard in the future.
It also raises the standard for technical founders as AI requires a specific skill set that some of the blockchain doesn’t have.
“Consumer Web3 apps have historically suffered from complexity,” Gordadze added. AI is the perfect tool to solve this, creating innovative experiences and simplifying complex defi primitives. ”
More clearly
However, one element of US policy that still needs to be properly aligned is clear conduct. The law is surrounded by non-stubcoin digital assets and places non-stability cryptocurrency in a bucket of commodities regulated under the CFTC.
“This sets the stage for the Clarity Act, which has a clear, strong impact on digital assets and could kickstart a new wave of programmable finance,” says Alexander II of Anagram.
Over $10 billion in Crypto Venture Capital was rolled out in the second quarter of 2025. As a result of the genius, venture capitalists seem to know what they’re looking for.
Depending on the market dynamics and transparency, the fourth quarter of 2025 could be one of the ages of VC funding in this space.
This post will tell you that the Genius Act will face a fundraising boom for Stablecoin Startup? It first appeared in Beincrypto.
