Chainlink rises to the sky thanks to the Genius Act

In the past 24 hours, the price of Chainlink (LINK) has increased by nearly 10%, drawing strong attention from the crypto community. As the legal landscape gradually clarifies, LINK is steadily establishing itself as a strategic bridge between traditional finance and blockchain.

Genius Act – The "catalyst" driving Chainlink

The current price increase of Chainlink is not just a short-term "pump", but seems to be a signal indicating fundamental changes in the structure of the entire ecosystem.

LINK price chart | Source: TradingViewOne of the main driving factors is the official passage of the Genius Act. This act provides a clear legal framework for stablecoins and digital assets, allowing banks in the U.S. to legally hold and custody cryptocurrencies as well as stablecoins.

CEO and co-founder of Chainlink – Sergey Nazarov – shared:

"The issuance of regulations for stablecoins by the U.S. will ignite a new wave of stablecoins in the U.S. in particular and globally in general. These stablecoins will require a mechanism to prove reserves and the ability to connect cross-chain to facilitate payments in the digital asset economy and tokenized funds. Currently, only Chainlink is the sole platform that integrates both of these factors within the same system."

In this context, Chainlink plays a crucial infrastructure role, connecting data and assets from the real world to the blockchain. When the Genius Act comes into effect, traditional financial institutions will need mechanisms to ensure legal interaction with digital assets. And that is when Chainlink's ACE (Automated Compliance Engine) comes into play.

ACE is designed to ensure that cross-chain transactions and the custody of digital assets fully comply with the current legal framework. Now that banks are officially allowed to participate in the digital asset market, Chainlink – through ACE – will become an indispensable "compliance gateway," thereby driving the demand for LINK tokens within the ecosystem.

Another user X also commented:

"The Genius Act has been passed, regulations for stablecoins have become clear. Banks can now custody crypto and stablecoins, even issue their own stablecoins. But most do not have an internal R&D team to build everything from scratch – that’s when Chainlink ACE plays its role."

High adoption rate

Besides the legal factors, another factor supporting the price increase is the amount of LINK on exchanges has dropped to a record low – a positive signal indicating that long-term confidence is on the rise.

When selling pressure decreases and the demand for using LINK increases significantly due to applications like staking, oracle services, and ACE, buying pressure may prevail and continue to push the price up.

The LINK supply chart on exchanges | Source: CHAINLINK77777/XAdditionally, the "Chainlink Standard" – a framework for integrating data between blockchain and traditional finance – is being increasingly adopted by financial institutions. The latest updates from CEO Sergey Nazarov indicate that Chainlink's vision has transcended the simple role of a "data oracle," evolving into a data infrastructure focused on regulatory compliance for the global financial system.

He assessed:

"The future of the global financial system will be on the blockchain. And the on-chain world needs a global standard – Chainlink Standard – to ensure that transactions are executed reliably both within each country and across borders, thereby creating a new global financial system."

With favorable legal policies, breakthrough technology, a strategy of cooperation with major financial institutions, and increasingly strengthened investment confidence, Chainlink is entering a new strategic growth phase. The recent price increase of nearly 10% may just be the beginning of a longer recovery cycle.

Justin