Crypto Stocks Surge 53% After Senate Approves GENIUS Act

Crypto stocks experienced a significant surge following the U.S. Senate's approval of the GENIUS Act, a landmark bill aimed at regulating stablecoins. The bill mandates that U.S. stablecoins be fully backed by dollars and requires annual audits for large issuers, sparking a wave of optimism in the crypto market. Circle, the issuer of USD Coin (USDC), witnessed a dramatic increase, with its stock soaring by 53% since the market opened on Wednesday after the legislation passed in the Senate on Tuesday night. Coinbase, a prominent crypto exchange, saw its shares rise by 20% since Wednesday.

The GENIUS Act introduces comprehensive regulations for stablecoins issued in the U.S., requiring that they be fully backed by U.S. dollars or equivalent liquid assets. It also mandates monthly audits for issuers and imposes additional compliance rules for anti-money laundering. This legislation represents the first major crypto bill to be passed by the U.S. Senate and the first time any legislation specifically addressing stablecoins has cleared either chamber of Congress. The bill now moves to the House of Representatives for a vote and potential revisions.

Circle's stock surge comes weeks after the company’s debut on the stock market under the ticker CRCL. After pricing its shares at $31, CRCL opened on the New York Stock Exchange at $69. Within its first day on the market, the company’s shares soared to a high of $103.75 before closing at $82.23, showcasing strong retail demand for access to the stablecoin industry. Since 2021, stablecoins have become increasingly popular as a means to settle cross-border transfers and protect assets against inflation. However, the U.S. stablecoin industry has been hindered by a lack of clear regulations, especially under the current administration.

The Senate’s passage of the GENIUS act was aided by the vocal support of the broader crypto industry. In addition to pushing for Congress to pass the stablecoin bill, the administration has established a national Bitcoin reserve, pardoned crypto criminal Ross Ulbricht and appointed officials that have ended a number of lawsuits against crypto companies. With support from the U.S. president and increasing regulatory clarity, mainstream corporations are considering implementing stablecoins into their payment structures.

Industry leaders and political figures have expressed their support for the GENIUS Act. Jeremy Allaire, CEO and co-founder of Circle, described the Senate's approval as a historic moment, stating that the legislation will bolster America’s economic and technological competitiveness for decades to come. The positive reactions from industry leaders and political figures underscore the significance of the GENIUS Act in shaping the future of digital assets in the United States.