Circle Stock Surges 34% on Senate Stablecoin Bill Passage

Circle, the issuer of USDC, the world’s second-largest stablecoin by circulating value, experienced a significant surge in its stock price following the U.S. Senate's passage of a bill supporting regulated stablecoins. The bill, known as the GENIUS Act, aims to integrate stablecoins into the U.S. financial system by outlining how firms can issue and manage fiat-backed stablecoins for payments. This legislative move signals strong bipartisan support for bringing crypto payments into the U.S. regulatory perimeter, although it still requires House approval and the President's signature.

Circle's stock soared 34% on Wednesday, reaching a closing price of $199.59, with further gains of 6% in after-hours trading. This rally pushed Circle's stock to a high of $211.87, marking one of the fastest climbs for a crypto stock since its debut on June 5. The stock has risen over 540% since its initial public offering, reflecting investor optimism about Circle's role in the future of digital payments.

Circle CEO Jeremy Allaire celebrated the Senate's passage of the GENIUS Act, calling it a breakthrough for American competitiveness. According to Allaire, the bill is a significant step towards making the U.S. the undisputed leader in digital assets. President Donald Trump also expressed support for the bill, stating that it would make the U.S. the "undisputed leader in digital assets" and that digital assets are the future.

The rally in Circle's stock reflects investor confidence that the company will be the chief beneficiary if the U.S. formally embraces stablecoins as digital cash equivalents. Analysts from Bernstein, who initiated coverage on Circle earlier this week, noted that the bill would "re-shore stablecoin innovation" and draw activity back from offshore issuers to regulated U.S. players. According to analyst Gautam Chhugani, the bill clearly defines stablecoins as payment stablecoins, making their legal treatment closer to digital cash and opening the door to mainstream adoption beyond crypto rails.