Stablecoin Market Value Plummets $16 Billion Amid GENIUS Act Impact

The stablecoin market has taken a significant hit in recent weeks, dropping $16 billion in value to reach a six-month low.

This decline marks the worst stretch for the sector since the Terra implosion of 2022, with total market capitalization falling roughly 3% from its peak in May 2026.

The GENIUS Act, enacted in July 2025, has been cited as a key factor contributing to this downturn. The legislation prohibits yields for payment stablecoins, treating them as payment instruments rather than investment vehicles.

As a result, investors are seeking higher-yielding alternatives, with tokenized Treasury products surging to around $16 billion in assets.