Circle and Coinbase Surge Up to 34% Following Passage of Stablecoin Regulation Bill

Quick overview

Cryptocurrency-related stocks surged on Wall Street Wednesday following the U.S. Senate’s approval of the GENIUS Act (Guiding and Enabling National Innovation in U.S. Stablecoins), a landmark bill aimed at regulating stablecoins issued within the United States.

Shares of crypto exchange Coinbase jumped more than 16%, extending its quarterly rally to over 50%. Meanwhile, Circle, the issuer of USD Coin (USDC), saw an even sharper rally—soaring 33.8%. Circle’s stock has now increased sixfold since its public debut.
What is the GENIUS Act?

The GENIUS Act introduces comprehensive regulation for stablecoins issued in the U.S., requiring that they be fully backed by U.S. dollars or equivalent liquid assets. It also mandates annual audits for issuers with a market capitalization exceeding $50 billion and imposes additional compliance rules for foreign issuers.

This marks the first major crypto bill to be passed by the U.S. Senate—and notably, the first time any legislation specifically addressing stablecoins has cleared either chamber of Congress.

Following its approval in the Senate, the bill now moves to the House of Representatives for a vote in the coming weeks. While passage in the House is uncertain due to the slim Republican majority, the strong bipartisan support seen in the Senate signals momentum in favor of the legislation.

Industry and Political Reactions

“We are witnessing history as the U.S. Senate approves the GENIUS Act, bringing us one step closer to enacting forward-looking legislation that will bolster America’s economic and technological competitiveness for decades to come,” said Jeremy Allaire, CEO and co-founder of Circle, on social media platform X (formerly Twitter).

President Donald Trump also weighed in, calling the bill a turning point for American leadership in digital assets:

“This law is going to make the United States the undisputed leader in digital assets. Nobody will do it better—it’s pure genius! Digital assets are the future, and our nation is going to dominate. This is about investment and massive innovation. I urge the House to act at lightning speed and pass a clean version of the GENIUS Act. Get it to my desk without delay or additions. This is American brilliance at its finest—and we’re going to show the world how to win in digital assets like never before,” he wrote on Truth Social.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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