Shares of Circle, Coinbase, and Robinhood surged on Wednesday following the U.S. Senate’s passage of a landmark stablecoin bill, marking a significant turning point in the debate over crypto oversight. The bill, which received bipartisan support, is expected to bring greater legitimacy to the stablecoin sector by establishing clearer rules for issuing and managing dollar-pegged tokens.
Circle’s shares closed up 33.8%, while Coinbase ended 16% higher and Robinhood gained 4.5%. The stablecoin issuer Circle, which went public earlier this month, saw its shares close at $199.59 compared to its IPO price of $31. After the bell, Circle’s stock was up another 4.4%.
Market Reaction and Future Prospects
The passage of the bill has been hailed as a breakthrough for the crypto sector, which has long been stuck in regulatory limbo. Analysts at Bernstein expect that once the bill is passed into law, likely by the end of summer, stablecoins will evolve from being the “money rail of crypto” to the “money rail of the internet.”
The GENIUS Act, which still needs to be passed by the Republican-controlled House of Representatives before heading to President Donald Trump for approval, could unlock fresh growth in the $256 billion stablecoin market. It would require stablecoins to be backed by liquid assets such as the dollar and short-term Treasury bills, and issuers would have to publicly disclose the composition of their reserves on a monthly basis.
“History is being made,” Circle CEO Jeremy Allaire said in a post on social media platform X, adding that he expects the legislation will “drive U.S. economic and national competitiveness for decades to come.” The bill’s passage is seen as a strong tailwind not just for stablecoins, but potentially for major cryptocurrencies like bitcoin as well.
The stablecoin legislation is one of two major crypto bills that industry supporters hope to have signed into law this year. With the Senate’s bipartisan support, the industry is gaining momentum, with several high-profile corporates reportedly exploring the launch of their own stablecoins.
