The U.S. Senate has made a significant move by approving the GENIUS Act this week, which establishes a clear regulatory framework for stablecoins pegged to the U.S. dollar. Officially known as the “Ensured Digital Money Innovation and U.S. Dollar Security (GENIUS) Act,” this legislation has garnered support not only from Republicans but also from several Democratic senators. The bill is now headed to the House of Representatives, where swift approval is anticipated before it is presented for President Donald Trump’s endorsement. Experts believe that this development will highlight crypto portfolios focusing on stablecoins and payment infrastructures, preparing model portfolios to emphasize this trend.
Impact of Stablecoin Regulations on Cryptocurrencies
With the formalization of the regulation, cryptocurrency investors are rapidly adjusting their strategies to gain access to this burgeoning sector. Analysts from the Paul Barron Network suggest a new portfolio approach focusing on cryptocurrencies linked to payment infrastructures and the stablecoin ecosystem. This strategy underscores the importance of networks like Ethereum (ETH) $2,524 , where most stablecoin transactions and decentralized finance (DeFi) activities occur.
The passage of the GENIUS Act through the Senate could lead to increased interest from investors in crypto projects focused on enhancing payment market returns. As regulated stablecoins near mainstream acceptance, the potential for significant growth in crypto portfolios built around this sector is evident in the coming months. The final approval process and the implementation details of the law hold considerable interest for the crypto market and its investors.
Model Cryptocurrency Portfolio Suggested by Experts
In light of prevailing market conditions and the potential effects of the regulation, analysts from the Paul Barron Network recommend a specific cryptocurrency portfolio allocation. Their proposed model portfolio includes Ethereum (ETH), with a 50% allocation due to its dominant role in stablecoin transactions and DeFi activities as a leading altcoin . Solana $146 (SOL), which is quickly being adopted on individual payment platforms, holds a 25% share.
Ripple $2 ‘s XRP, which has potential for use in banking and point-of-sale transactions, is allocated 10% of the portfolio. Layer-2 solutions providing scalable and low-cost stablecoin payment infrastructure, such as Optimism (OP), Arbitrum (ARB), and Polygon (POL), are collectively given about a 9% share. Additionally, 2.5% is reserved for Stellar (XLM), which has been gaining strength through PayPal-supported integrations for cross-border transfers.
Emerging blockchain networks such as Avalanche (AVAX), Sui (SUI), and Aptos (APT) also find a place in the portfolio, as they have the potential to capture market share with increased payment and stablecoin usage.
