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GENIUS Act shifted demand from Bitcoin to stablecoins, impacting Bitcoin's monetary premium.

Market News
27 May 2026
Coindesk
View Source
Bearish
pluang ai news

The GENIUS Act regulated stablecoins with full USD or Treasury backing, creating a government-backed alternative to Bitcoin and shifting demand away from Bitcoin's dollar access use case. This caused Bitcoin to fall 43% while stablecoin market cap surged 45% by late 2025. Bitcoin's role as a digital dollar wrapper for countries with capital controls diminished, impacting its monetary premium. The upcoming CLARITY Act may redefine Bitcoin as a commodity, potentially reviving its digital gold narrative depending on post-regulation market behavior.

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