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.

It’s a good sign. This is a bullish signal.BTCHolding it in anticipation of a price increase. 2% for the month may seem like a small amount, but it represents the continued decline in the exchange reserve since 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. 

Value of tokenized RWAs continues to rise, as the value total onchain is up by 2.6%. Tokenized stocks are becoming popular among firms, but they could lead to legal problems. 

This is July’s numbers. 

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

Trump signed into law on July 18 the GENIUS Act which established a set of regulations for industry.

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 The stablecoins that are worth more than 250 billion dollars. 

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 is the chief investment officer of 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 exchange reserves declined by 2% during July. The trend, which has continued since the start of 2025, is continuing. 

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

This was the first month since 2018 where less than 15% (of the total Bitcoin supply) has been on exchanges. The lack of Bitcoin supply at exchanges, and on OTC desks (over-the-counter), has been a problem for some time. led some analysts to believe There will be Bitcoin “supply shock” In the future, buyer demand will meet with decreased supply.

The Crypto Chief Bitcoin analysis service noted Bitcoin has recently reached all-time records, but the supply is low on OTC exchanges. “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

At a July press conference, he said: “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. 

The value of tokenized shares increased in July grew Over $400 Million at 15% 

The trading app Robinhood has announced that they will offer RWA trading. As of the time this article was published, tokenized stocks addresses had increased by nearly 700% in one month. 

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

While tokenized stock may raise capital for companies, it is not without legal issues, especially if private firms, such as OpenAI, offer them. “equity” With tokens, the public has no rights of ownership. 

The regulators in certain jurisdictions raised the issue of a heightened awareness. concerns over whether there is sufficient investor protection for stock tokenholders. 

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

While Congress and the GENIUS Act dominated headlines during Crypto Week in 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 has introduced crypto ATM regulations and laws that treat gold, silver, and metal-backed electronic currency as legal tender. 

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

Oregon has updated its abandoned property law to include cryptocurrency. “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 2324The bill would have created a stockpile of crypto from the seized coins by law enforcement. Hobbs blocked this bill as it was a blatant violation of the Constitution. “disincentivizes local enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions.”

Crypto firms gain approval from seven governments

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

Seven countries have issued legal frameworks or licenses for cryptocurrency companies in July. 

Hong Kong Monetary Authority finalized its rules for stablecoins A public register of licensed issuers was launched. 

Bybit, OKX, and CoinShares have all been granted licenses in Europe under the Markets in Crypto-Assets regulatory framework (MiCA). Bybit has officially launched launched operations in AustriaOKX and CoinShares 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, has granted a license to an E-Money Institution that allows it to create a stablecoin in the 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. 

The US has both Ripple The following are some examples of how to get started: Circle Some are seeking bank 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. 

Magazine: Crypto traders ‘fool themselves’ with price predictions: Peter Brandt