Coinbase and Circle shares surged Wednesday after US lawmakers signaled support for clearer stablecoin regulation by pushing through the GENIUS Act for House approval.
On Wednesday, Coinbase (COIN), listed on the Nasdaq, closed the trading day up 16.32% to $295.29, while Circle (CRCL), listed on the NYSE, rose 33.82% to close at $199.59, according to Google Finance data.
GENIUS Act is a bullish signal for the entire crypto industry
The rally followed Tuesday’s 68-30 Senate vote in favor of the GENIUS Act, passed just six weeks after it was introduced by Tennessee Senator Bill Hagerty.
Many in the crypto market see this as a bullish sign for the industry, marking a significant step toward creating a regulatory framework for stablecoins.
US President Donald Trump said in a Truth Social post on Thursday to get the GENIUS Act to his desk “ASAP — NO DELAYS,” while White House AI and crypto czar David Sacks thanked Trump for delivering on his “promise to make the USA the crypto capital of the planet.”
Circle, the issuer of USDC (USDC) — the second-largest stablecoin by market capitalization — is set to benefit from the bill, as most of its revenue comes from interest earned on the reserves backing USDC, which it co-founded in partnership with Coinbase in October 2018.
Following the stock surge, crypto trader Genco said that the market is “slowly discovering that Coinbase gets 50% of $CRCL revenue generated from USDC [and] 100% of revenue from USDC on Coinbase platform [and] an equity stake.”
Circle’s stock soaring is the “talk of the town”
“It’s a Stablecoin Summer,” Genco said, acknowledging the Genius Act being passed by the Senate. “This will be the most obvious play in retrospect. ” Crypto analyst TylerD added, “CRCL is the talk of the town.”
Meanwhile, crypto entrepreneur Anthony Pompliano pointed to Coinbase’s stock surge as a signal that “Wall Street wants Bitcoin and crypto assets.”
Coinbase stock’s all-time high is $357, reached in November 2021 amid a broader crypto market rally that saw Bitcoin (BTC) hit new highs of $69,000.
At the time of publication, Bitcoin’s current high is $111,970, which it reached on May 22.
Recent FUD over future stablecoin public listings
While Coinbase has been publicly listed since April 2021, Circle has only been public for a few weeks.
On June 5, Circle made a strong entry onto the New York Stock Exchange (NYSE), with its shares climbing 167% in its first trading session.
Related: Coinbase seeks SEC approval for ‘tokenized equities’ — Report
Some crypto market participants think this could be the start of more stablecoin companies going public, but others aren’t so sure it will go well.
On Monday, BitMEX founder Arthur Hayes warned that most new public stablecoin companies will be overvalued and fail. Hayes also claimed that Circle’s stock price is “insanely overvalued.”
Magazine: Arthur Hayes doesn’t care when his Bitcoin predictions are totally wrong
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.