Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Shares of Circle, the first publicly traded stablecoin company, experienced a remarkable surge following the Senate’s passage of a new legislation aimed at establishing a regulatory framework for stablecoins.
This bill, known as the GENIUS Act, seeks to create regulations and consumer protections for stablecoin firms, including mandates for full reserve backing, monthly audits, and anti-money laundering (AML) compliance.
Coinbase And Circle Ride High
Since the Senate vote on Tuesday night, Circle’s stock, CRCL, has skyrocketed by 62%, climbing from $148 to $240 on Friday to close this week’s trading session.
The positive sentiment surrounding stablecoins also boosted other crypto-related stocks, with Coinbase, the largest cryptocurrency exchange in the US, seeing a 20% increase during the same period.
Circle issues the USDC stablecoin, the second-largest by market capitalization. It trails only Tether’s USDT, which has a market capitalization of $214 billion, while USDC’s is $48 billion, according to Yahoo Finance data.
Circle’s CEO Jeremy Allaire expressed his enthusiasm for the GENIUS Act in a post on social media site X (formerly Twitter), noting its potential to enhance US economic competitiveness for years to come. “History is being made,” he stated, emphasizing the significance of the legislation.
The stock surge came shortly after Circle’s debut on the New York Stock Exchange (NYSE). Pricing its shares at $31, Circle opened at $69 and reached a high of $103.75 on its first day before closing at $82.23, reflecting strong retail interest in the stablecoin sector.
Major Corporations Eye Stablecoin Integration
As highlighted by Fortune, since 2021, the popularity of stablecoins has risen significantly abroad, particularly for cross-border transactions and as a hedge against inflation.
However, US crypto firms have voiced concerns about the lack of clear regulatory guidelines, especially under the leadership of Securities and Exchange Commission (SEC) Chair Gary Gensler, who initiated numerous investigations into crypto companies during his tenure in the regulator before his official resignation.
The passage of the GENIUS Act was bolstered by support from President Donald Trump, who has been an advocate for the crypto industry. His administration has taken steps to advance stablecoin legislation, including the establishment of a national Bitcoin reserve and the appointment of SEC officials who have dismissed several lawsuits against crypto entities.
With backing from the federal government and a clearer regulatory environment on the horizon, mainstream corporations are increasingly considering the integration of stablecoins into their payment systems.
Major companies such as Meta, Google, and Airbnb are exploring how stablecoins could enhance their financial operations, signaling a significant shift in the acceptance of digital currencies in mainstream commerce.
Featured image from DALL-E, chart from TradingView.com
