On Wednesday, the U.S. Senate approved a significant bill regulating dollar-backed stablecoins, creating a substantial impact in the cryptocurrency markets and leading to a notable surge in Circle’s stock prices. Shares of Circle (NYSE: CRCL) soared by 34% during trading hours, with an additional 6% rise in after-hours trading.
Historic Step in Stablecoin Regulation
The approved piece of legislation, known as the GENIUS Act, establishes the rules governing the issuance and management of fiat currency-backed stablecoins by U.S. companies. The bill still awaits approval from the House of Representatives and President Donald Trump’s signature. This bipartisan-supported development is seen as a potential shift towards a more competitive and regulatory framework for digital assets in the U.S.
In his statement on the platform X, Circle CEO Jeremy Allaire described the legislative approval as a pivotal moment for the United States. He expressed, “History is being made,” asserting that this development marks a turning point for American competitiveness.
Growing Confidence and Stock Performance in Markets
Circle’s stock closed at $199.59 on Wednesday, escalating to $211.87 in post-market trading. Since its public offering on June 5, the stock has risen over 540%, positioning CRCL as one of the fastest-growing stocks in the crypto sector. Circle’s market capitalization has surpassed $48 billion, outpacing many traditional payment firms.
A considerable increase in trading volumes accompanied this stock activity, with over 60 million shares changing hands, nearly double the average. During the day, share prices fluctuated between $148 and $200.89.
Comments from Analysts and Industry Representatives
Sector analysis firm Bernstein highlighted that the bill’s passing could revive stablecoin innovation in the U.S. Analysts there believe that regulations might shift sector activities from abroad back to the U.S. Bernstein analyst Gautam Chhugani commented, “The bill clearly defines stablecoins as a means of payment. Legally, this brings them closer to digital cash and opens new doors for general acceptance.”
Former U.S. President Donald Trump also remarked on Truth Social that the legislation positions the U.S. as a leader in digital assets, stating, “The Senate passed an extraordinary law that will make America the unrivaled leader in digital assets… Digital Assets are the future, and our country will own it.”
As a U.S.-based company and issuer of USDC, Circle is among the firms expected to benefit most from clear regulations within the country. Circle has long called for transparency in regulations. Recent developments suggest Circle’s potential to assume a fiat currency-like role in the digital sphere.
Overall, clarifying stablecoin regulation in the U.S. has created a positive atmosphere in both the fintech world and among investors. Analysts suggest that once enacted, the new law could lead to more widespread adoption of crypto-focused payments and attract more investment to the sector. Should the bill come fully into force, the U.S. could elevate to a more competitive position in digital assets and payments.
