Senate Passes GENIUS Act Coinbase Shares Rise 16.32% Circle Shares Surge 33.82%

The shares of Coinbase and Circle experienced a significant surge in value following the US Senate's passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). This landmark legislation aims to establish a comprehensive framework for stablecoin issuers, requiring full asset backing, monthly reserve disclosures, and yearly audits for those with over $50 billion in market capitalization.

Senator Cynthia Lummis, a pro-crypto Wyoming Republican, celebrated the passage of the bill, stating, “Today brings us one step closer to becoming a welcoming home for digital asset companies. Now, let’s finish the job & pass market structure legislation to fulfill POTUS’ vision of becoming the crypto capital of the world.”

Circle, the company behind USD Coin (USDC), the second-largest stablecoin by market capitalization, saw its shares surge by 33.82%, closing at $199. This surge comes just after Circle's initial public offering (IPO) earlier this month, with an initial price of $31.00 per share. Coinbase, a leading cryptocurrency exchange, also saw its shares rise by 16.32%, closing at $295.29 on Wednesday.

The bill's passage has created a more favorable regulatory environment for the cryptocurrency industry, particularly for stablecoin issuers. The legislation provides greater clarity and stability, which is expected to drive further growth in the sector. The market's positive response, as evidenced by the surge in value of Circle and Coinbase shares, underscores the potential for stablecoins to play a significant role in the future of digital payments.

However, the House of Representatives must still pass a version of the bill before it heads to the President's desk for approval. This next step is crucial for the legislation to become law and for the cryptocurrency industry to fully capitalize on the new regulatory framework. The passage of the stablecoin bill represents a significant milestone for the industry, paving the way for further growth and innovation in the sector.