TLDR
- Circle stock surged 34% to $199.59 after the Senate passed the GENIUS Act stablecoin regulation bill with a 68-30 vote
- Coinbase gained 16% as it co-founded USDC and shares 50% of revenue with Circle from the stablecoin
- The GENIUS Act creates the first federal framework for dollar-backed stablecoins with full reserve backing requirements
- Circle’s stock has gained 500% from its $31 IPO price just two weeks ago, briefly hitting an all-time high of $200.90
- The bill now moves to the House of Representatives, with supporters hoping for passage before the August recess
Circle stock exploded 34% higher on Wednesday, closing at $199.59 after the U.S. Senate passed landmark stablecoin legislation. The company that issues the USDC stablecoin saw its shares briefly touch an all-time high of $200.90 during the trading session.
The Senate approved the GENIUS Act by a decisive 68-30 vote on Tuesday night. The bill establishes the first comprehensive federal framework for regulating dollar-backed stablecoins in the United States.
Circle’s stock has now gained a staggering 500% from its initial public offering price of $31 set just two weeks earlier on June 5. The company went public on the New York Stock Exchange after years of operating as a private entity.
Coinbase also rallied on the news, gaining more than 16% as investors recognized the exchange’s deep ties to Circle. Coinbase co-founded USDC and shares 50% of its revenue with Circle from the stablecoin operations.
The cryptocurrency exchange earns 100% of the interest on USDC held directly on its platform. Stablecoins have become Coinbase’s biggest revenue driver after trading, with stablecoin-related income jumping 50% year-over-year in the first quarter.
Circle CEO Jeremy Allaire expressed his excitement about the legislative milestone. “History is being made, as the US Senate passes the GENIUS Act,” he posted on social media following the vote.
History is being made, as the US Senate passes the GENIUS Act, taking us one step closer to breakthrough legislation being signed into law that will drive US economic and national competitiveness for decades to come.
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) June 17, 2025
Regulatory Framework Creates New Standards
The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, allows private companies to issue stablecoins under strict guardrails. These include full reserve backing requirements and monthly audits of the reserves.
The legislation mandates that stablecoin tokens must be completely backed by dollar reserves. This includes cash or Treasury securities held in segregated accounts.
The Federal Reserve and Office of the Comptroller of the Currency will gain oversight powers under the new framework. The bill also aims to improve technical interoperability among blockchain platforms.
Consumer protection guidelines will be standardized across the industry. While some states like New York already regulate stablecoins through programs like BitLicense, the GENIUS Act brings everything under one national standard.
Circle appears well-positioned to benefit from these new rules. The company already complies with strict reserve transparency and compliance standards that align with the proposed regulations.
Market Reaction Reflects Growing Confidence
The broader crypto sector rallied alongside Circle and Coinbase. Robinhood gained 4.5% to reach a new all-time high of $78.35 on Wednesday.
The market reaction reflects growing confidence that clear federal oversight could accelerate mainstream stablecoin adoption. It also helps reduce regulatory uncertainty for U.S.-based stablecoin issuers.
Bernstein analysts expressed bullish views on the legislation. “The intent of the GENIUS ACT is to bring stablecoin innovation back to the US onshore from the offshore markets,” analyst Gautam Chhugani wrote in a research note.
The bill clearly defines stablecoins as payment instruments, treating them as digital cash. This legal clarity could drive broader mainstream adoption beyond crypto trading, which currently represents 80-90% of stablecoin usage.
Circle Chief Policy Officer Faryar Shirzad said the GENIUS Act could help with regulatory clarity. “All the investment dollars that are sitting out there ready to build the next generation of the financial system will be put to work,” Shirzad told CNBC.
The nearly $260 billion stablecoin market could see explosive growth if the legislation becomes law. This would drive more revenue to key infrastructure players like Circle and Coinbase.
The GENIUS Act represents the crypto industry’s first major legislative win at the federal level. However, the bill still faces hurdles before becoming law.
The legislation now heads to the House of Representatives for consideration. House Financial Services Committee staff confirmed that scheduling discussions are expected to begin next week.
The House has its own version of a stablecoin bill dubbed STABLE. Both versions prohibit yield-bearing consumer stablecoins but diverge on regulatory oversight responsibilities.
The Senate version centralizes oversight with Treasury. The House splits authority between the Federal Reserve, the Comptroller of the Currency, and other agencies.
Reconciling the two versions could take time. House Republicans are weighing whether to attach a broader market structure package to the legislation, according to congressional aides.
Supporters of the bill hope to have it on President Trump’s desk before the August congressional recess. Circle’s after-hours trading showed continued momentum, with shares rising an additional 6.15% to $211.87 by Wednesday evening.
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