The US Senate has passed a bill regulating stablecoins, significantly impacting cryptocurrency markets and Circle's stock.
How Does the New Legislation Affect Stablecoins?
The new GENIUS Act outlines the issuance and governance guidelines for fiat-currency-backed stablecoins by American companies. While it awaits endorsement by the House of Representatives and President Donald Trump's signature, the bipartisan-supported bill signals a trend towards more stringent regulation of digital assets in the country.
What Drives the Confidence and Stock Performance?
Circle's stock closed at $199.59 and rose to $211.87 in post-market trading. Since its IPO on June 5, the stock has surged over 540%. Circle's market valuation has exceeded $48 billion, surpassing many traditional payment firms. Trading volume was notably high, with over 60 million shares exchanged, nearly double the average.
Insights from Industry Experts
Gautam Chhugani from Bernstein remarked, "The bill brings stablecoins closer to digital cash legally and opens new opportunities for general acceptance." Experts suggest that the legislative clarity will provide Circle significant advantages, allowing it to operate under clear regulatory guidance.
The adoption of stablecoin regulation fosters optimism in the fintech and investment sectors, potentially encouraging broader adoption of crypto payments and attracting investment.
