Ripple advocate and pro-crypto attorney John Deaton recently highlighted the likely beneficiaries of the newly passed GENIUS Act, naming Circle (issuer of USDC), Ripple (issuer of RLUSD), and Ethereum (ETH) as key winners.
Deaton stated on X that many expect Circle and Ripple to benefit from the legislation, but he emphasized that Ethereum could emerge as the biggest winner. He pointed to the efforts of figures like Fundstrat and Ethereum co-founder Joseph Lubin, all of whom are pushing to position ETH at the center of this regulatory evolution.
Deaton also noted growing interest from Tether's Paolo Ardoino, with mentions of a potential U.S.-based stablecoin variant.
The comment came as a reply to Nate Geraci's reaction to CNBC calling Ethereum “Wall Street’s invisible backbone”
Pro-crypto legislation
The GENIUS Act marks a landmark moment for the crypto industry in the United States, especially for stablecoins. It introduces a clear federal regulatory framework that aims to bring legitimacy, transparency, and oversight to fiat-backed stablecoins.
The legislation requires that issuers maintain full one-to-one reserves, obtain federal licenses, and undergo regular independent audits. It also mandates that all stablecoin issuers comply with the Bank Secrecy Act, enforcing anti-money laundering (AML) and counter-financing of terrorism (CFT) protocols.
Specifically, the act stipulates that only federally approved entities — such as insured depository institutions, credit unions, and qualified nonbank institutions — can issue stablecoins.
Reserves backing stablecoins must consist of physical cash, U.S. Treasury bills, and other low-risk assets, with transparency enforced through periodic disclosures and public audits. These robust provisions aim to protect consumers and ensure systemic integrity as stablecoins become more deeply integrated into the financial system.
Ethereum price down
Despite the long-term promise of regulatory clarity, Ethereum's price has been hit hard in the short term. Over the weekend, ETH dropped nearly 8%, reflecting broader volatility in the crypto market.
The decline was compounded by weaker-than-expected U.S. employment data released by the Bureau of Labor Statistics.
The report showed only 73,000 jobs were added in July (far below forecasts), while previous job gains for May and June were revised down by a total of 258,000.
This underwhelming labor report sparked market-wide risk-off sentiment, driving Bitcoin down 4% to $112,158 and pulling Ethereum and other altcoins along with it.
Dan Burgin
U.Today Editorial Team
