Visa (NYSE:V) Stock: Senate Stablecoin Bill Triggers Payment Network Selloff
TLDR
- Visa stock dropped 4.9% and Mastercard fell 5.4% after U.S. Senate passed stablecoin legislation
- Coinbase Global surged 16.3% as crypto exchanges benefit from stablecoin legitimacy
- Amazon and Walmart reportedly considering issuing their own stablecoins to reduce payment fees
- Senate’s GENIUS Act creates federal oversight framework for stablecoin issuers
- Wall Street analysts view selloff as buying opportunity, citing consumer adoption challenges
Visa stock took a hit Wednesday, falling nearly 5% as investors reacted to the U.S. Senate passing new stablecoin legislation. The payment giant’s shares dropped 4.9% while rival Mastercard declined 5.4%.
The Senate approved the GENIUS Act, which creates the first federal framework for stablecoin regulation. This legislation allows private companies to issue regulated digital dollars under government oversight.
Coinbase Global saw the opposite reaction, with shares jumping 16.3% as crypto exchanges stand to benefit from increased stablecoin legitimacy. Bakkt Holdings also gained 2.3% in Wednesday trading.
The payment network selloff started last week following a Wall Street Journal report. Amazon and Walmart are reportedly exploring issuing their own stablecoins to transform payment systems.
These retail giants want to reduce reliance on traditional card networks and banks. Stablecoin-based systems could allow merchants to bypass conventional payment rails entirely.
Visa shares have dropped 5.9% over the past week since the Amazon-Walmart news broke. Mastercard has declined 5.3% during the same period.
📉 Visa & Mastercard both dropped ~5% today…
Why? Reports say Amazon, Walmart & others are exploring stablecoin payments. right as the GENIUS Act clears a legal path.
What a coincidence.
Stablecoins can slash payment costs by up to 85%, bypassing traditional card networks… pic.twitter.com/CiBNjFg95Y
— Bitcoinsensus (@Bitcoinsensus) June 19, 2025
The stablecoin threat centers on transaction fees. Card networks like Visa and Mastercard earn revenue from processing traditional card payments.
If merchants adopt stablecoin systems, they could potentially avoid these fees. This would directly impact the core business model of payment processors.
Wall Street Remains Cautious but Optimistic
Despite the recent selloff, many analysts aren’t panicking about stablecoin competition. Wall Street experts believe consumer adoption will face major hurdles.
Getting shoppers to use crypto at checkout remains a challenge. Most consumers still prefer traditional payment methods over digital currencies.
William Blair analyst Andrew Jeffrey sees the stock decline as a buying opportunity. He argues stablecoin technology isn’t ready for mainstream business-to-consumer transactions.
Jeffrey holds a five-star rating and believes the market overreacted to stablecoin fears. Technical challenges and consumer habits may protect traditional payment networks.
The GENIUS Act still needs House approval before reaching President Trump’s desk. The legislation represents a step toward legitimizing the crypto industry.
Regulatory Framework Takes Shape
The Senate bill introduces federal oversight for stablecoin issuers. This marks the first official framework for regulated digital dollar creation.
Private firms would operate under government supervision when issuing stablecoins. The legislation aims to bring clarity to the previously unregulated space.
Crypto exchanges like Coinbase benefit from this regulatory clarity. Clear rules make it easier for institutions to enter the digital asset space.
The bill’s passage reflects growing acceptance of cryptocurrency in mainstream finance. However, implementation details remain unclear until House action.
Wall Street maintains a Strong Buy rating on Visa stock overall. The consensus includes 24 Buy ratings and four Hold ratings from recent analyst coverage.
The average price target sits at $388.85, suggesting 14% upside potential from current levels. Analysts believe the stablecoin threat may be overstated in the near term.
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