Circle shares jumped another 10% in premarket trading on Friday.
Shares of Circle and Coinbase rallied on Wednesday, as Wall Street cheered the Senate’s passage of the GENIUS Act, which would establish a federal framework for U.S. dollar-pegged stablecoins.
Circle, the issuer of the USDC stablecoin, rose 33% following the passing of the bill late Tuesday. It’s the continuation of a remarkable run for Circle’s stock since the company held its stock market debut on June 5. The shares are trading at about $200, up almost 544% from their $31 IPO price.
The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, allows private companies to issue stablecoins under strict guardrails, including full reserve backing and monthly audits.
It represents the crypto industry’s first major legislative win, but still has to get signed into law. The bill now heads to the House, which has its own version of a stablecoin bill dubbed STABLE. Both prohibit yield-bearing consumer stablecoins, but diverge on who regulates what.
If the GENIUS Act becomes law, it could pave the way for explosive growth in the nearly $260 billion stablecoin market, and drive more revenue to key infrastructure players like Circle.
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