Frax (FRAX) Surges 25% Following GENIUS Act Approval

FRAX, the native governance token of the decentralized stablecoin protocol, Frax Finance, has experienced a notable surge over the past 24 hours. The token has surged by more than 25% following recent regulatory developments. 

The spike in the price of FRAX is largely attributed to the recent approval of three key bills that would shape the future of digital assets. On Thursday, the United States House of Representatives passed the GENIUS Act, introducing clearer regulation for the stablecoin market. 

Historic win today for stablecoins, the dollar, & all US companies that have bet on American innovation, especially us at @fraxfinance that structured our roadmap early for first-to-market GENIUS compliant digital dollars. This is day 0 of a New Golden Era for crypto & the US! 🇺🇸 https://t.co/Ou9JFthglI

— sam.frax (@samkazemian) July 17, 2025

Stablecoins Gain Regulatory Clarity With GENIUS Act 

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act seeks to introduce a regulatory framework for stablecoins. These are crypto-assets that are designed to maintain a stable price and are pegged to another asset. 

The legislation requires stablecoin issuers to hold 100% in reserves, with a strict 1:1 reserve backing in liquid assets. Additionally, the GENIUS Act mandates that stablecoin issuers undergo regular audits and register with regulators. 

Notably, federally licensed financial institutions could also issue stablecoins under the new legislation. This allows banks and payment companies to launch their stablecoins.

Remarkably, the bill has been hotly debated since it was proposed. The GENIUS Act is largely seen as a positive development for the crypto industry as it provides US-regulated stablecoins with guardrails for investor protection and transparency. 

However, several critics believe the bill could pose surveillance risks and hinder smaller issuers. Others have raised concerns about President Trump’s possible conflict of interest, especially with his World Liberty Financial USD1 stablecoin.

Regardless, after a historic 10-hour procedural vote on Wednesday, the GENIUS Act and two other crypto bills advanced to the floor for final consideration. The bill was officially passed on Thursday and now awaits Trump’s signature. 

FRAX Surges 25%

Over the past few days, FRAX has recorded heightened investor interest ahead of the GENIUS Act approval. Following the announcement, the token rallied over 25% to $3.4, with its market cap currently sitting at over $303 million, according to CoinGecko data.

FRAX is also seeing a spike in trading activity. The token’s trading volume is currently above $70.4 million at the time of writing. 

Notably, the token is nowhere near its all-time high (ATH) of $42.8, which it recorded in January 2022. However, it has surged 167% higher than its all-time low (ATL) of $1.26 recorded four months ago, on March 11, 2025. 

About Frax Finance 

Frax Finance is a versatile DeFi protocol that seeks to revolutionize the future of digital money via its scalable stablecoin infrastructure. The platform’s FraxUSD (frxUSD) stablecoin underpins every activity on the Frax ecosystem. 

frxUSD is a stablecoin pegged 1:1 to the USD. The token is fully backed by U.S. Treasury assets, fulfilling the core requirements of the GENIUS Act. 

In addition to the frxUSD stablecoin, Frax Finance offers the Fraxtal Blockchain. It is an EVM-compatible layer1 blockchain that allows users to access leading DeFi protocold, build and deploy scalable dApps, and participate in network validation. It also features the Frax Network, which allows users to seamlessly mint frxUSD using any stablecoin or USD and earn passive income. 

The FRAX (formerly FXS) token is the native governance token of the Frax Finance ecosystem. It allows holders to vote on important decisions that affect the platform’s growth. 

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