The GENIUS Act, signed into law in July 2025, has fundamentally altered Bitcoin's market position by creating a regulated stablecoin alternative backed by U.S. dollars and Treasuries.

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Bitcoin's primary real-world use case has been as an alternative dollar access point for citizens in countries with capital controls like Nigeria, Vietnam, Turkey, Argentina, and Ethiopia. The GENIUS Act effectively provided a government-sanctioned, less volatile solution.

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- Figure 2 -

Since the Act's passage, stablecoin market cap surged 45% to over $306 billion, while Bitcoin fell 43%. Gold has outperformed Bitcoin by nearly 100% since July 2025.

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The upcoming CLARITY Act could potentially revive Bitcoin's digital gold thesis by regulating it as a commodity, providing institutional frameworks for pension funds and endowments.