Stablecoins are moving again, and in significant volumes. Binance alone has recorded over $550 million worth of stablecoin deposits in just a few hours.
This surge has sparked renewed speculation about increased market activity. At the same time, the United States appears to be on the verge of passing a major stablecoin regulation under the GENIUS Act.
If approved, it could bring clarity and structure to a part of crypto that has long operated in legal uncertainty.
Stablecoin Volume is Rising
A sudden increase in stablecoin volume on centralised exchanges is often interpreted as a sign that buying activity may follow. When traders transfer stablecoins like USDT and USDC onto platforms such as Binance, they are usually preparing to purchase other crypto assets.
Unlike derivatives platforms, where funds may be used for hedging or leverage, spot exchanges attract users who intend to own the underlying asset directly.
This is what makes the recent $550 million influx into Binance particularly notable. According to data from CryptoQuant, it represents one of the largest short-term stablecoin movements to a single exchange in recent weeks.
This kind of volume rarely moves without intention. Historically, it has preceded buying pressure on Bitcoin, Ethereum, and major altcoins.
The rationale is straightforward. Traders and institutions want liquidity on hand when they expect an opportunity to enter the market. By parking stablecoins on Binance, they are ready to act quickly.
This could indicate renewed confidence, particularly if market participants expect regulatory progress or a favourable macroeconomic backdrop.
What makes this moment interesting is that it aligns with discussions in Washington. The GENIUS Act is being pushed through the Senate, and if it passes, it could offer the kind of regulatory certainty that institutional investors have long demanded. If regulatory news is positive, stablecoins might play a key role in a market rebound.
Is the GENIUS Act About to be Approved?
The GENIUS Act has been in development for months, but recent movements in the Senate suggest it is finally close to passing.
The bill proposes the first federal framework for stablecoin oversight in the United States, with clear distinctions between state and federal supervision based on an issuer’s market size.
This week, Senate Majority Whip John Thune filed cloture on a key amendment and on the bill itself. Under Senate procedure, this limits debate to 30 hours and sets up a final vote window.
If no procedural objections arise, the bill could reach a vote by Wednesday. The cloture process also indicates that bipartisan support is strong enough to overcome potential delays, as it requires at least 60 votes to proceed.
The Hagerty amendment, which reshaped much of the bill, was key to building cross-party consensus.
It allows smaller stablecoin issuers to operate under state-level rules while placing larger ones under a federal framework. This dual system addresses both innovation and oversight concerns.
It also introduces transparency rules requiring monthly attestations and 1:1 reserves, typically in the form of US dollars or Treasury bills.
One of the most contentious elements is a ban on interest-bearing stablecoins. These products, which offer yield, have faced opposition from the banking sector.
The bill responds by prohibiting them, at least for now. Another clause limits foreign-issued stablecoins from circulating in the US without regulatory equivalence. This reflects national concerns over financial sovereignty and surveillance.
Perhaps the most unusual part is a restriction on the executive branch. The bill includes language preventing the president or any executive office from launching a national stablecoin unilaterally.
It asserts that any such innovation must come through Congress, reinforcing the separation of powers in monetary policy.
If passed, the GENIUS Act would move to the House, where a similar proposal known as the STABLE Act is under discussion.
Lawmakers will need to align the two versions before the bill reaches the President. Early signals from House leaders suggest that the overall direction is aligned, though minor technical details may require further negotiation.
Conclusion
The timing of this week’s events could prove significant. A rise in stablecoin deposits on Binance often signals market readiness. At the same time, the GENIUS Act is nearing final Senate approval, potentially reshaping the legal landscape for stablecoins.
Together, these developments point to renewed institutional interest and a market preparing for movement. If stablecoin regulation passes and inflows continue, the next phase of crypto activity may arrive sooner than expected.