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Circle Stock Surges as Senate Approves Landmark Stablecoin Legislation
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Shares of Circle Internet group (CRCL) are experiencing a significant surge, fueled by the U.S. Senate’s recent approval of the GENIUS Act, a groundbreaking bill designed to establish a regulatory framework for dollar-backed stablecoins. The stock initially jumped 33% on Wednesday and continued its upward trajectory, climbing another 22% on Friday [3].
Senate Passes Stablecoin Bill: A Win for Circle and the Crypto Market
The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. stablecoins,passed the Senate on Tuesday and now awaits consideration in the House of Representatives.This legislation aims to provide clarity and structure to the rapidly evolving stablecoin market, perhaps unlocking new opportunities for innovation and adoption [2].
Circle, the issuer of USDC, the second-largest stablecoin by market capitalization, stands to benefit significantly from this regulatory clarity. The company’s stock has already rocketed over 500% since its initial public offering (IPO) on June 5, 2025, demonstrating strong investor confidence in its future prospects [1].
Did You Know? Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar,making them less volatile than other cryptocurrencies.
Coinbase Also Sees Gains Amid Stablecoin Optimism
The positive sentiment surrounding stablecoin regulation is also benefiting other players in the crypto space. Coinbase (COIN), a leading crypto exchange operator, saw its shares climb over 3%. Coinbase benefits directly from the growth of USDC, receiving half of the revenue generated from interest earned on Circle’s USDC reserves and 100% of the interest on USDC held directly on its own platform.
Stablecoins Attract Interest from Major Corporations
Beyond the crypto industry, stablecoins are attracting significant interest from major corporations seeking to streamline payments and reduce transaction costs. Companies like Amazon and Walmart are reportedly exploring the possibility of using or even issuing their own stablecoins. Other prominent companies, including Uber, Apple, and Airbnb, have also been linked to stablecoin exploration in recent weeks.
Pro Tip: keep an eye on regulatory developments in the stablecoin space, as they could significantly impact the future of digital payments and the broader crypto market.
The GENIUS Act: A Closer Look
The GENIUS act seeks to establish a extensive regulatory framework for stablecoins, addressing key areas such as consumer protection, collateral requirements, and regulatory oversight. According to Alex Thorn, head of firmwide research at Galaxy Digital, the bill could “meaningfully upgrade dollar payment rails,” improve transparency, and promote wider adoption of blockchain technology.
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