Circle and Coinbase Stocks Surge After Senate Passes GENIUS Act

NEW YORK, New York — Shares of Circle Internet Group and Coinbase surged this week as the Senate approved the GENIUS Act, a significant piece of legislation aimed at regulating stablecoins.

The stock of Circle rose by 33% following the Senate’s approval on Tuesday, continuing a strong upward trend since its IPO on June 5. Circle’s stock has increased nearly sixfold since then. Coinbase also saw a 16% increase as the excitement over stablecoin regulation grew.

The GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, seeks to create a federal framework for stablecoins that are pegged to the U.S. dollar. It now moves to the House of Representatives for further consideration.

According to Alex Thorn, head of research at Galaxy Digital, the legislation would enhance consumer protections and regulatory oversight while allowing companies to use public blockchains for stablecoin transactions. “The bill would significantly improve dollar payment systems, promote transparency, and increase U.S. debt demand,” said Thorn.

Stablecoins, which have seen growing interest, provide a bridge for cryptocurrency trading. They remain popular as companies explore their potential applications in finance. The competition includes the U.S. government’s desire to glean more regulatory control over this sector.

During an interview with CNBC, Circle Chief Policy Officer Faryar Shirzad expressed optimism that the GENIUS Act could bring clarity to regulations. “Bipartisan support is crucial for defining the rules of dollar-pegged stablecoins,” Shirzad said. He believes this can unlock significant investment ready to innovate in the financial sector.

Coinbase CEO Brian Armstrong has ambitions for USDC to surpass Tether as the leading stablecoin, highlighting the importance of collaboration between banks and stablecoins. Coinbase has already initiated a merchant payments product that enables e-commerce platforms to accept stablecoin payments with fast settlements.

As the House prepares to address its own version of the stablecoin legislation, the path toward a cohesive regulatory environment remains to be seen, but the expectation for swift bipartisan progress continues to build.