Following the support for the GENIUS Act, Coinbase and Circle stocks have shown significant growth. The legislation promises to bring clarity to stablecoin regulation, instilling optimism in the cryptocurrency industry.
Support for Stablecoin Legislation
The GENIUS Act was supported by the U.S. Senate with a vote of 68-30. It was passed just six weeks after being introduced by Tennessee Senator Bill Hagerty. This event is perceived as a positive signal for institutional investors and the entire cryptocurrency industry.
Impact on Coinbase and Circle
Coinbase's stock rose by 16.32% on Nasdaq, closing at $295.29, while Circle's stock increased by 33.82%, closing at $199.59. Circle, the issuer of USDC, stands to benefit significantly from the new legislation, as its revenue heavily relies on the reserves backing USDC.
Expectations and Warnings for Future Stablecoins
The market discusses the expected rise of stablecoin companies going public. However, some experts, like BitMEX founder Arthur Hayes, warn against the dangers of overvaluation of new public companies and consider Circle's stock price to be inflated.
The rise in Coinbase and Circle shares reflects growing investor interest in stablecoins alongside the passage of the GENIUS Act. However, the market also faces concerns regarding the future of stablecoins.
