Circle (CRCL) stock soared as much as 19% on Wednesday after the Senate passed a bill that would establish a federal framework for dollar-backed cryptocurrencies known as stablecoins.
Shares of Circle, an issuer of stablecoin, have gained more than 400% since the company’s blockbuster public debut on June 5 as enthusiasm surrounding crypto builds.
The GENIUS Act, which still has to be approved by the House and gain signature from President Trump, sets up regulations for how US companies can issue and manage dollar-backed stablecoins for payments.
“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,” Circle co-founder and CEO Jeremy Allaire said on X following the bill’s passage.
Read more about Circle’s stock moves and today’s market action.
The bill’s passage late Tuesday also sent shares of crypto exchange platform Coinbase (COIN) up 12% while trading platform Robinhood (HOOD) gained 4%.
Bernstein analysts are bullish on the legislation becoming law later this summer.
“The intent of the GENIUS ACT is to bring stablecoin innovation back to the US onshore from the offshore markets,” Bernstein’s Gautam Chhugani and his team said in a note earlier this week.
“The bill clearly defines a stablecoin as a payment stablecoin, making its legal treatment as digital cash,” he added, “Thus, the intent of the bill is to drive broader mainstream adoption for payments & settlement, beyond simply settlement currency for crypto/digital assets (~80-90% of the use case today).”
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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