The US Senate has passed a bill regulating stablecoins, significantly impacting the cryptocurrency market and Circle's stock prices.
Historic Step in Stablecoin Regulation
The approved legislation, known as the GENIUS Act, establishes rules for the issuance and management of fiat-currency-backed stablecoins by US 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 regulatory framework for digital assets in the US.
Growing Confidence and Stock Performance in Markets
Circle's shares (NYSE: CRCL) closed at $199.59 on Wednesday, escalating to $211.87 in after-hours 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.
Comments from Analysts and Industry Representatives
Sector analysis firm Bernstein highlighted that the bill’s passing could revive stablecoin innovation in the US. 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 US President Donald Trump also remarked that the legislation positions the US 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.”
Overall, clarifying stablecoin regulation in the US 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.
