Circle Stock Surges 20% After Senate Passes GENIUS Act

Circle, the first publicly-traded stablecoin company, experienced a significant surge in its stock price, with a 20% intraday gain today. This surge comes just days after the U.S. Senate passed the GENIUS Act on Tuesday. Following the bill's passage, Circle’s share price jumped from $148 to $227 within hours, marking a 53% increase. At the time of writing, the stock is trading around $241.

The GENIUS Act is the first major legislation focused on stablecoins, which are digital tokens designed to maintain a value equal to the U.S. dollar. The law mandates that companies keep full reserves, undergo monthly audits, and comply with anti-money laundering regulations. Although the bill has not yet become law, its passage through the Senate has sparked a significant reaction in the market. Circle is the company behind USDC, the second-largest stablecoin globally after Tether’s USDT.

Circle went public on the New York Stock Exchange earlier this month under the ticker “CRCL.” On its first day of trading, the stock was priced at $31 but opened at $69 and closed at $82.23. Since then, it has gained over 600%. The passage of the GENIUS Act has been seen as a green light from Washington, potentially attracting more businesses and banks into the stablecoin space. Other stablecoin companies, such as Coinbase, have also seen gains since the Senate vote.

Circle’s CEO, Jeremy Allaire, celebrated the Senate’s passage of the GENIUS Act, stating that it marks a significant step towards breakthrough legislation that will drive U.S. economic and national competitiveness for decades to come. The bill has also received support from U.S. President Donald Trump, who urged Congress to pass it without delays or amendments.

On Friday, Seaport Global gave Circle its first “buy” rating. Analyst Jeff Cantwell predicted that the stablecoin market could grow from $260 billion to $2 trillion. He also forecasted that Circle could generate $3.5 billion in revenue next year, up from $1.68 billion this year. Cantwell described Circle as a top-tier crypto ‘disruptor’ with a substantial future opportunity.

The regulatory clarity provided by the GENIUS Act is expected to attract more investors to the stablecoin market, potentially further boosting Circle's stock price. The stablecoin market's growth, driven by increasing demand for stable and reliable digital assets, presents a significant opportunity for Circle. The company's strong fundamentals, including its robust business model and widely used stablecoin platform, USDC, have also contributed to its stock price surge.

Top tech firms like Meta, Google, Airbnb, and X have reportedly been exploring stablecoins since the bill's passage. Additionally, Shopify recently announced USDC payments for all its users, further highlighting the growing interest in stablecoins. The recent rally in Circle's stock price reflects a combination of regulatory developments, market demand, and strong fundamentals, positioning the company well to capitalize on the expanding stablecoin market.