Circle Shares Surge After Senate Passes Landmark Stablecoin Legislation

NEW YORK, NY — Shares of Circle Internet Group surged 8% in premarket trading on Friday after the U.S. Senate passed the GENIUS Act, a groundbreaking bill aimed at establishing a federal framework for the use of stablecoins. The bill, passed on Tuesday, allows banks, firms, retailers, and others to use stablecoins, which are cryptocurrencies linked to stable assets like the U.S. dollar.

This legislation is heralded as the first major law approved by Congress to regulate the digital currency industry. Circle, the largest U.S. issuer of stablecoins, saw its stock soar after its initial public offering (IPO) on June 5, climbing from an IPO price of $31 to nearly $200 by Wednesday, marking a sixfold increase.

The Wall Street Journal reported that Tether, the world’s largest stablecoin issuer, has not demonstrated compliance with the standards set forth in the GENIUS Act. Tether did not respond to requests for comment regarding this matter.

According to analysts at brokerage Bernstein, the legislation may allow stablecoins to evolve from a niche product to a fundamental element of the internet’s financial infrastructure. A clean passage through the House of Representatives would be a significant step before it reaches President Trump’s desk for approval.

Circle’s flagship USDC stablecoin, co-founded with Coinbase, has a market value around $61.4 billion, underlining the increasing demand for stablecoins due to their stability compared to traditional cryptocurrencies.

Circle CEO Jeremy Allaire expressed optimism about the future of stablecoins. He stated on social media that this moment marks a historic turning point in digital asset legislation, which could enhance U.S. economic competitiveness for decades.

Should the GENIUS Act become law, analysts predict that stablecoins could unlock new opportunities within the $256 billion market, potentially boosting revenues for companies like Circle and Coinbase. The new rules will require stablecoins to be backed by liquid assets and for issuers to disclose reserve compositions monthly to enhance transparency.

As companies worldwide explore their own stablecoin initiatives, the passage of the GENIUS Act is seen as a potential catalyst in the ongoing evolution of the digital asset landscape.