How do U.S. regulatory events, such as the GENIUS Act on stablecoins, influence Bitcoin’s market environment?
Why is this the correct answer?
Regulations like the GENIUS Act set legal frameworks for stablecoins and indirectly influence Bitcoin by altering market infrastructure, compliance costs, and investor trust. When rules change, trading platforms adapt systems, and participants reassess risks. For beginners, it is important to understand that U.S. regulatory actions can lead to increased scrutiny or clarity. Clear rules may boost confidence and attract institutional capital, while uncertainty can deter investors, impact liquidity, and cause price fluctuations in the Bitcoin market.
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