Following the passage of the GENIUS Act, Circle's stock experienced a significant increase, drawing attention to cryptocurrency regulation in the U.S.
Market Reaction to the GENIUS Act
On June 18, Circle’s stock surged by 34%, closing at $199.59 after the U.S. Senate approved the GENIUS Act with a vote of 68–30. The stock reached a temporary high of $200.90, marking nearly a 6.5-fold increase from its IPO price of $31.
Contents of the GENIUS Act
The bill establishes federal licensing requirements for stablecoin issuers and mandates full backing of tokens with reserves such as cash or government securities. It also grants oversight powers to the Federal Reserve and the Office of the Comptroller of the Currency. The act aims to improve technical interoperability among blockchain platforms and to standardize consumer protection guidelines.
Impact on Circle's Stock and the Market Overall
Along with Circle’s gains, Coinbase’s stock rose by 14%, and Robinhood’s stock increased by 4.5%, reaching a new all-time high of $78.35. The market response reflects growing confidence that clear federal oversight of stablecoins could accelerate mainstream adoption and reduce regulatory risks for U.S.-based issuers.
The passage of the GENIUS Act represents a significant step towards establishing a legal framework for stablecoins in the U.S., which may greatly influence the cryptocurrency market and bolster investor trust.
