Circle’s cryptocurrency (CRCL) has shown significant growth following the passing of the GENIUS Act by the U.S. Senate. The act concerning stablecoins may influence the financial market in the U.S.
GENIUS Act and Its Market Impact
The U.S. Senate has approved the GENIUS Act, which will allow banks and other financial institutions to utilize stablecoins. Following this, Circle's stock increased by 20%, reaching $180.
Senators Clash Over Stablecoin Risks
Debates arise among lawmakers about the bill. Senator Kirsten Gillibrand supports it, noting that it will enable American businesses to leverage new financial technologies. However, Senator Elizabeth Warren expresses concerns over insufficient consumer protections.
Potential and Risks of Stablecoins
Data shows that the demand for stablecoins is real. In February, transactions totaled $4 trillion, but only $6 billion was in real payments. Citigroup predicts that the total supply of stablecoins could grow to $3.7 trillion by 2030.
In conclusion, the approval of the GENIUS Act could significantly impact the stablecoin market, yet debates among senators and potential risks remain critical issues.
