Aug 7, 2025
10-15 mins
The GENIUS Act Is Law: Why the US Crypto Boom Starts with a Bare Metal Infrastructure Boom
For some time now, the US crypto industry has operated in a state of high potential but with uncertain and persistent regulations. That era has finally ended because the signing of the GENIUS Act in July 2025 is way more than just a legislative step. It's probably one of the most significant pieces of regulatory clarity the US digital asset market has ever had.
On the surface, the Act provides a clear framework for stablecoins. But it carries a powerful message for the global financial community: the US is officially open for business and intends to take the lead of the global crypto revolution. It looks like a new American crypto boom is kicking off, powered by some seriously good digital infrastructure.
For business leaders, VCs, and technical teams, the most important question will be: ‘’How to build for the coming wave of investment and innovation’’. This blog will break down what the GENIUS Act actually means, predict the chain reaction it will set off, and offer clear instructions for procuring the essential infrastructure, such as bare metal servers, that will get you prepared for the upcoming trends.
What is the GENIUS Act and What Does It Actually Do?
The GENIUS Act establishes a clear federal framework for stablecoins. The "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act) is designed to bring stability, trust, and clear regulations to a key piece of the digital asset economy.
It directly addresses the market's biggest concerns by focusing on the four key pillars listed below:
Establishes a Clear Federal Framework: The regulation mandates that stablecoin issuers maintain 100% reserve backing with highly liquid assets; for instance, US dollars or short-term Treasuries. This is designed to have plagued less-regulated stablecoins to significantly reduce the risks of bank-run-style collapses.
Prioritizes Consumer Protection: Issuers are asked to publish every single month, public disclosures of their reserves. Plus, strict marketing rules mean they can't make fake claims about their stablecoins being backed by the US government, or having federal insurance.
Reinforces the US Dollar: The GENIUS Act is designed to increase global demand for these assets by having reserves to be held in US dollars and Treasuries; moreover, it strengthens the dollar's status as the world's primary reserve currency.
Combating Illicit Activity: The Act specifically subjects stablecoin issuers to the Bank Secrecy Act, requiring robust anti-money laundering (AML) and sanctions compliance programs. It also needs the issuers to have the technical capabilities to freeze, seize, or even burn assets when legally required to do so.
While the text focusing on stablecoins, the message and goals are aiming at the whole digital asset ecosystem. This is absolutely the regulatory clarity that institutional capital has been looking for.
The Chain Reaction: How Regulatory Clarity Starts an Infrastructure Boom
One single piece of legislation seldom creates a new market overnight; however, it can be a powerful acceleration that unlocks years of pent-up potential. The GENIUS Act is actually one such catalyst. Based on what we’re seeing, we predict it will probably set off a three-phase chain reaction, building up to a huge demand for the foundational "picks and shovels" of the digital world: infrastructure for high-performance workloads.
First, the Capital Arrives: Why VCs and Institutions Are Deploying Billions
In the past several years, the biggest challenge to large-scale institutional investment in US-based crypto projects has been regulatory uncertainty. The risk of a sudden, unpredictable crackdown kept billions of dollars on the sidelines.
The GENIUS Act effectively clears off these blockers. It indicates a clear, long-term commitment from the US government to support a domestic digital asset industry.
Expert Prediction: Expect a massive spike of VCs and institutional funds into US-domiciled Web3/ Blockchain startups, decentralized protocols, and digital asset companies over the next 18 - 24 months (US News, 2025). We might even see the launch of new, specific crypto funds. Additionally, the traditional financial institutions will start to allocate significant capital to the space.
Then, the Builders Emerge: The Surge in New US-Based Web3/ Blockchain Projects
Capital is definitely the fuel for innovation. With access to this new, upcoming wave of funding and a clear legal framework to operate within, the total amount of new Web3/ Blockchain projects being established in the US will skyrocket.
We believe this won't just be new startups; it’s more likely to see a wave of established international projects, for instance, DeFi protocols, digital assets platforms, moving their core operations and legal headquarters to the US to tap into the world's top capital markets and the currently more certain regulatory environment. The US is aiming to become the global hub for well-funded blockchain innovation.
Finally, the Infrastructure Demand Explodes: The "Picks and Shovels" of the New Gold Rush
This is the important pivot for any business operating in the industry or space. Every single one of these new projects coming out soon will need a place to run their code. Furthermore, every new DeFi protocol, every new validator network, every new Web3 gaming platform, they all run on servers. Therefore, it will create a rising demand for high-performance, secure, and reliable digital infrastructure. The winners of this new crypto boom won't just be the creators of the hottest new token or projects; they will be the projects built on the most solid and powerful foundations that can go for a long-term run. The demand for the "picks and shovels" of this new gold rush is about to skyrocket.
Why is Bare Metal the Essential Infrastructure for Post-GENIUS Act Web3 Projects?
As this new wave of Web3 projects comes online, standard, shared cloud hosting might not be able to meet the needs. The stakes are too high. The GENIUS Act ushers in an era of institutional-grade expectations, and that requires institutional-grade infrastructure. This is why bare metal servers are the most important foundation for the future of Web3.
The Performance Imperative: Meeting the Requirements of Blockchain Consensus
Blockchain networks are super demanding. Protocols such as Solana, with its Proof-of-History mechanism, require a consisten and ultra-low-latency performance in order to process thousands of transactions per second and maintain consensus. If you share the cloud server with other users, there’s a risk of having your application’s performance impact by the "noisy neighbor". Just imagine, one single moment of performance throttling can lead to a validator missing blocks, losing revenue, and damaging its reputation.
Bare metal eliminates this risk. With a single-tenant physical server, you get direct, and uncontested access to 100% of the CPU, RAM, and network resources. This delivers raw, dedicated, and predictable performance, which are exactly blockchain applications are demanding.
The Security & Control Requirement: Protecting High-Value Assets
In the digital world, "good enough" security? That’s usually the start of a disaster. Validator keys, RPC node access, and other important components must be secured with the highest level of protection.
Shared cloud environments, by their nature, have a larger attack surface. A single-tenant bare metal server provides physical isolation, which also gives you the absolute control over the hardware, the operating system, and the entire security stack. Moreover, you can implement custom, hardened security protocols that are simply not possible in a multi-tenant cloud environment, creating the peace of mind needed when securing high-value digital assets.
Decentralization's Core Principle: Avoiding the Hyperscaler Honeypot
A core principle of Web3 is decentralization. The long-term health and viability of any blockchain ecosystem depend on its nodes being run by multiple sets of operators in a wide range of geographic locations.
The new wave of projects will be deeply aware of the systemic risk of building the whole operation on a few major cloud providers. Let’s say a regional outage or a policy change at a single hyperscaler will threaten the entire network. Bare metal from a diverse ecosystem of independent providers allows for true geographic and network decentralization, which is important for building a resilient and censorship-resistant Web3.
Your Playbook: How to Select the Right Bare Metal for Your US Web3 Project
Now you understand the opportunity, and you know you probably need bare metal. What's next? For a user who is ready to buy, the path forward can seem a bit complicated. Here is a clear, actionable step-by-step guide to buying the right infrastructure in this new market.
Step 1: Define Your Workload (RPC Node vs. Validator)
First of all, understand your own needs and requirements to achieve the goals. Are you looking for a read-heavy RPC node that can serve data to users, or a write-heavy validator that requires participation in consensus? The hardware needs for each can be different. Therefore, the first thing you have to do to find a cost-effecitve solution is fully understand your use case.
Step 2: Pick the Right Hardware (CPU, RAM, NVMe)
Normally, when it comes to a serious Web3/ Blockchain project, you will need a high-performance server. This typically includes:
A modern, high-frequency CPU with a high core count (e.g., AMD EPYC or Ryzen).
A large amount of ECC RAM (256GB or more) is required to avoid data corruption.
Multiple, high-endurance (high-TBW) NVMe SSDs to handle heavy read and write operations.
For a more detailed breakdown of specific hardware for a demanding network like Solana, you can read our in-depth guide here: How to Choose a Bare Metal Server for Your Solana Validator: Best Configurations for Minimum Requirements (2025)
Step 3: Choose Your Location (The Importance of US-Based Hosting)
With the GENIUS Act in place, there is now a clear strategic advantage to having your infrastructure within the US regulatory framework. It means stability to investors and makes it easier to serve the US market; therefore, selecting a provider with a strong presence in key US data center hubs is critical.
Step 4: Compare Providers to Find the Best Value
This is the most complex and time-consuming step. How do you find the right solution with the right provider at the right price? This is where Inflect comes in. Instead of spending weeks researching individual providers, a marketplace is the only way to efficiently:
Compare bare metal providers side-by-side on specs, listed pricing, and go-live times.
Find specific hardware configurations from a range of vetted, US-based providers.
Get a validator server quote from multiple sources to ensure you're getting the best market price.
The GENIUS Act Opened the Door. Your Infrastructure Will Determine if You Walk Through It.
The GENIUS Act has created tremendous opportunities. It has provided the clear regulations needed to unlock a new era of American innovation and investment in the digital asset space. The winners will be the projects that are established on a strong foundation of high-performance, secured, and decentralized infrastructure.
The landscape has been reshaped. Inflect provides the map.
Explore Inflect’s IT Infrastructure Marketplace to compare top-tier bare metal providers today, or talk to one of our experts to design your winning Web3 infrastructure strategy.
About the Author
Chanyu Kuo
Director of Marketing at Inflect
Chanyu is a creative and data-driven marketing leader with over 10 years of experience, especially in the tech and cloud industry, helping businesses establish strong digital presence, drive growth, and stand out from the competition. Chanyu holds an MS in Marketing from the University of Strathclyde and specializes in effective content marketing, lead generation, and strategic digital growth in the digital infrastructure space.
Contact: