Stablecoins grow while Bitcoin investors are cautious in July

As July comes to an end, crypto market analysts remain optimistic. Bitcoin reserves at cryptocurrency exchanges have fallen by 2% for the month.

This is an ominous sign. This is a bullish signal.BTCThe price will rise, so you hold it and wait. Although 2% for the month might seem like a small amount, this continues the downward trend in currency reserves that began back in January.

The US House of Representatives adopted three crypto-laws in July. One of them — the GENIUS Act regulating stablecoins — was signed into law by President Donald Trump. The CLARITY Act, a new regulatory framework for stablecoins that is currently making its way to the Senate, has set the rules and regulations. 

Tokenized assets continue to increase in value, and the total value on chain of RWAs has grown by 2,6%. Tokenized stocks are becoming popular among firms, but they could lead to legal problems. 

The numbers for July. 

As GENIUS Act is passed, the stablecoin market has grown by $4 billion.

Trump signed GENIUS Act on July 18 into law. This set a number of regulations for stablecoins.

It didn’t include provisions for stablecoin issuers to offer their customers interest — a major sticking point from industry bigwigs like Coinbase CEO Brian Armstrong — but the law was hailed as a major step forward for the crypto industry. 

The stablecoin market grew by nearly 4 billion dollars in July. bringing the overall market cap Stablecoins with a value of more than $250 billion. 

Stablecoins also became more active. In July, the number of active monthly addresses increased by over 20% to more than 38 million. It reflects the growing use of stablecoins. In the first quarter, 2025 the transaction value will reach over $7 trillion. 

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Fabian Dori, chief investment officer at Sygnum told Cointelegraph that the GENIUS Act “gives confidence to organizations and issuers to develop original, innovative ‘killer apps’ that don’t just serve their customers’ current needs but create demand for entirely new services, including payments.”

Continued decline in Bitcoin Exchange Reserves

Bitcoins on exchanges are decreasing. Bitcoin reserves on exchanges decreased by 2% in July. This trend has been going since 2025. 

If you look at the overall trend, since January the number of Bitcoin deposits on exchanges has decreased by 14%. 

In July, less than 15 percent of Bitcoin was available on exchanges for the first time in 2018. It is clear that the exchanges are not able to meet demand. led some analysts to believe Bitcoin will exist “supply shock” As buyer demand and decreased supply meet in the near term, prices will rise.

Crypto Chief is a Bitcoin Analysis Account noted The recent highs in Bitcoin prices and low BTC supply on OTC and exchanges are a result of the price fluctuations. “The Bitcoin balance available OTC is in freefall. We have never seen such a divergence between balance and price! You are witnessing a supply problem play out.”

The decreasing stock on the exchanges indicates that investors are shifting to long-term investing. Ben Zhou is the CEO of Bybit, and he believes this could be a sign that investors expect a market rally, or more volatility.

Related: Bitcoin in limbo: Watch these BTC price levels ahead of FOMC

In July, He told a Press Conference. “In the past few months, the centralized exchange holding of Bitcoin reserves has been on a downtrend. That typically means people are not trading the market as much and they think the price is fluctuating. So, it actually means that there’s not so much confidence.”

Tokenized RWAs pass $25 billion

In July, the total value of tokenized RWAs exceeded $25 billion. 

Binance: A Report stated, “As regulatory frameworks become clearer, the sector is poised for continued growth and increased participation from major industry players.”

In fact, this market’s total value has increased by 260% in just one year, primarily due to tokenized credit from private sources and US Treasury bonds. 

In July the tokenized stock value increased by 12% grew Over $400 Million at 15% 

The trading app Robinhood has announced that they will offer RWA trading. Tokenized stock addresses increased nearly 700% over the course of the month at time of publication. 

Related: Boom in RWA tokenization expected after passing of GENIUS Act — Aptos exec

Although tokenized shares may seem like a great way to raise money, there are legal concerns, especially when firms such as OpenAI sell them. “equity” With tokens, the public has no rights of ownership. 

Some jurisdictions are raising concerns about the safety of some products. concerns over whether there is sufficient investor protection for stock tokenholders. 

Three US states pass crypto laws; Arizona axes crypto reserve bill

Despite the GENIUS Act, Congress’ Crypto Week and other headlines from July, many states are also working to expand their regulatory frameworks. Three states — Missouri, New Hampshire and Oregon — passed laws pertaining to crypto in January. 

Missouri adopted regulations for cryptocurrency ATMs, and passed a bill that makes gold and silver coins, along with metal-backed digital currencies legal tender. 

New Hampshire established A committee “to study and develop a potential regulatory framework for stable tokens and tokenized real-world assets (RWAs),” The findings of the study will be submitted by November 1. 

Oregon’s law regarding abandoned property now includes crypto. “treating them as abandoned after three years and obligating holders to remit or, if instructed, liquidate them for the State Treasurer.”

In Arizona, Governor Katie Hobbs vetoed House Bill 2324Hobbs blocked the bill because it would allow law enforcement to seize crypto. Hobbs vetoed the bill, claiming that it violated his rights as a citizen. “disincentivizes local enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions.”

Crypto companies gain regulatory approvals in seven countries

To regulate the crypto industry, governments around the world have implemented licensing frameworks.

In July seven countries created legal structures for crypto firms or granted licenses. 

Hong Kong Monetary Authority finalized its rules for stablecoins The registry is open to all licensed issuers. 

Bybit, OKX, and CoinShares have all been granted licenses in Europe under the Markets in Crypto-Assets regulatory framework (MiCA). Bybit is officially published launched operations in AustriaOKX, CoinShares and. set up shop in France.

Ripple announced it was seeking a license MiCA is aiming to reach Europe via Luxembourg. AllUnity is a stablecoin from DWS and Deutsche Bank. received approval from German financial regulators, which granted it an E-Money Institution license (EMI), allowing the stablecoin to be issued in euro.

Bitstamp, a cryptocurrency exchange will launch in 2019. be able to serve customers Singapore has approved the use of the Singapore Dollar after approval by its Monetary Authority. 

Both are available in the US Ripple The following are some examples of how to get started: Circle They are applying for banking licenses. This license will allow the companies to provide custodial service and to operate nationwide under the supervision of the Office of the Comptroller of the Currency. They would not have to submit individual applications to state regulators. 

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