Crypto market analysts are optimistic as July winds to a detailed, and Bitcoin reserves on crypto exchanges are down 2% on the month.
This can be a bullish sign. A lower in alternate reserves signifies persons are taking their Bitcoin (BTC) off exchanges and holding it, anticipating the value to go greater. While 2% on the month appears like small potatoes, it continues the general lower in alternate reserves since January.
In the US, the Home of Representatives handed three crypto legal guidelines in July. One in all them — the GENIUS Act regulating stablecoins — was signed into regulation by President Donald Trump. With set guidelines for stablecoins, and a regulatory framework within the type of the CLARITY Act making its manner by way of the Senate, observers predict substantial development within the stablecoin sector.
The worth of tokenized real-world belongings (RWAs) continues to develop, with complete RWA worth onchain rising by 2.6%. Companies are embracing tokenized shares, however additional adoption might include authorized bother.
Right here’s July by the numbers.
Stablecoin market provides $4 billion in market cap as GENIUS Act turns into regulation
On July 18, Trump signed the GENIUS Act into regulation, which set out a collection of laws for the stablecoin trade.
It didn’t embrace provisions for stablecoin issuers to supply their clients curiosity — a serious sticking level from trade bigwigs like Coinbase CEO Brian Armstrong — however the regulation was hailed as a serious step ahead for the crypto trade.
In July, practically $4 billion was added to the stablecoin provide, bringing the overall market cap of stablecoins above $250 billion.
Stablecoins have additionally grow to be extra energetic. The variety of month-to-month energetic addresses was up over 20% in July to over 38 million. This displays rising adoption of stablecoins, the entire transaction worth of which reached over $7 trillion within the first quarter of 2025.
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Sygnum chief funding officer Fabian Dori beforehand told Cointelegraph that the GENIUS Act “offers confidence to organizations and issuers to develop authentic, progressive ‘killer apps’ that don’t simply serve their clients’ present wants however create demand for totally new companies, together with funds.”
Bitcoin alternate reserves proceed downward pattern
The quantity of Bitcoin sitting on exchanges goes down. In July, Bitcoin alternate reserves decreased 2%, persevering with a pattern that has persevered for the reason that starting of 2025.
When wanting on the pattern since January, the variety of Bitcoin reserves on exchanges is down 14%.
July additionally marked the primary time since 2018 that lower than 15% of the general Bitcoin provide was on exchanges. This lack of provide on exchanges and over-the-counter (OTC) desks has led some analysts to believe that there might be a Bitcoin “provide shock” within the close to future, as purchaser demand meets with decreased provide.
Bitcoin evaluation account Crypto Chief noted the numerous variance in Bitcoin’s value, which just lately hit all-time highs, and the low provide of BTC on OTC desks and exchanges: “The Bitcoin steadiness accessible OTC is in freefall. We’ve got by no means seen such a divergence between steadiness and value! You’re witnessing a provide drawback play out.”
Diminishing provide on exchanges implies that persons are switching to long-term holding. This might imply that buyers predict a value rally or additional volatility available in the market, in accordance with Ben Zhou, CEO of alternate Bybit.
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He stated at a press convention in July, “In the previous few months, the centralized alternate holding of Bitcoin reserves has been on a downtrend. That sometimes means persons are not buying and selling the market as a lot and so they suppose the value is fluctuating. So, it truly implies that there’s not a lot confidence.”
Tokenized RWAs move $25 billion
The entire worth of tokenized RWAs surpassed $25 billion, rising by about 2.5% in July.
A report from Binance stated, “As regulatory frameworks grow to be clearer, the sector is poised for continued development and elevated participation from main trade gamers.”
Certainly, the entire worth of the RWA market has grown by 260% this yr alone, pushed primarily by tokenized non-public credit score and US Treasury debt.
In July, the worth of tokenized shares grew 15% to over $400 million.
Buying and selling app Robinhood introduced at the start of the month that it will likely be providing RWA buying and selling. At publishing time, tokenized inventory addresses have been up practically 700% on the month.
Associated: Boom in RWA tokenization expected after passing of GENIUS Act — Aptos exec
Tokenized shares could also be an attention-grabbing manner for companies to lift capital, however there are nonetheless authorized questions, significantly when non-public companies like OpenAI provide so-called “fairness” with no possession rights to the general public by way of tokens.
Regulators in some jurisdictions have raised concerns over whether there is sufficient investor protection for inventory tokenholders.
Three US states move crypto legal guidelines; Arizona axes crypto reserve invoice
While the GENIUS Act and Congress’ crypto week stole headlines in July, states have additionally been engaged on increasing their regulatory frameworks for cryptocurrencies. Three states — Missouri, New Hampshire and Oregon — handed legal guidelines pertaining to crypto in January.
Missouri launched laws for crypto ATMs and a regulation that treats gold and silver specie, in addition to metals-backed digital currencies, as authorized tender.
New Hampshire established a committee “to check and develop a possible regulatory framework for secure tokens and tokenized real-world belongings (RWAs),” which is able to submit its findings by Nov. 1.
Oregon up to date its regulation on deserted property to incorporate crypto, “treating them as deserted 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 2324, which might create a state stockpile from crypto seized by regulation enforcement authorities. Hobbs blocked the invoice as a result of it “disincentivizes native enforcement from working with the state on digital asset forfeiture by eradicating seized belongings from native jurisdictions.”
Crypto companies rating regulatory approval in seven nations
Governments worldwide have launched licensing frameworks to control the cryptocurrency trade.
In July, seven nations fashioned authorized constructions or issued licenses to cryptocurrency companies.
The Hong Kong Financial Authority finalized its rules for stablecoins and launched a public registry for licensed issuers.
In Europe, Bybit, OKX and CoinShares all acquired licenses underneath the Markets in Crypto-Belongings (MiCA) regulatory framework. Bybit formally launched operations in Austria, whereas OKX and CoinShares set up shop in France.
In the meantime, Ripple announced it was seeking a license underneath MiCA and is eyeing a European growth by way of Luxembourg. AllUnity, a stablecoin mission from DWS and Deutsche Financial institution, received approval from German financial regulators, who granted an E-Cash Establishment (EMI) license that may permit it to difficulty a euro-denominated stablecoin.
Crypto alternate Bitstamp will be able to serve customers in Singapore following approval from the nation’s Financial Authority.
In the US, each Ripple and Circle are searching for banking licenses. The license would permit the companies to supply custodial companies and function nationally underneath the oversight of the Workplace of the Comptroller of the Forex, reasonably than having to use individually with state regulators.
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