Circle Internet experienced a significant 16% surge in its share value in early Wednesday trading following the approval of a landmark bill on stablecoin regulation by the U.S. Senate. This event is expected to foster wider acceptance of a sector that was previously considered a specialized area within the crypto industry.
This uncommon display of bipartisan support marks a crucial shift in the often divisive discussions surrounding cryptocurrency regulation. It represents a significant breakthrough for an industry that has been mired in regulatory uncertainty for an extended period.
Circle, which issues the second-largest stablecoin by market value, went public in a triumphant debut on the New York Stock Exchange earlier this month. Its shares are now valued at $173.60, a significant increase from the IPO price of $31.
The company’s flagship stablecoin, USDC, has a market value of approximately $61.4 billion, as per CoinGecko data. These tokens have found favor for combining the convenience of cryptocurrency without the associated volatility. Tied to currencies like the U.S. dollar, they aim to maintain a steady value backed by reserves.
The bill, referred to as the GENIUS Act, now awaits passage by the Republican-dominated House of Representatives before President Donald Trump can sign it into law. Analysts at Bernstein predict that “once it becomes law (likely by the end of summer), we expect stablecoins to transition from being the money rail of crypto to the money rail of the internet.”
If the bill is enacted, stablecoins will be required to be backed by liquid assets such as U.S. dollars and short-term Treasury bills. Moreover, issuers will be mandated to disclose the make-up of their reserves publicly on a monthly basis. This development could significantly enhance the legitimacy of the sector and attract more high-profile corporations to launch their own stablecoins.
Stablecoins, which currently represent roughly $256 billion of the total $3.3 trillion crypto market value, could also provide a strong boost for major cryptocurrencies like bitcoin, as per KBW analysts.
