Shares of Circle and Coinbase soared on Wednesday after the U.S. Senate passed the GENIUS Act, a landmark piece of legislation aimed at regulating U.S. dollar-pegged stablecoins. Circle, the issuer of the USDC stablecoin, saw its stock price jump 33% following the news, continuing its strong performance since going public on June 5. Its shares are now trading at approximately $180—nearly six times its IPO price of $31. Meanwhile, Coinbase, which shares USDC revenue with Circle, gained over 16%.
Stablecoin Adoption and Regulation Could Strengthen Coinbase Revenue and Shape the Crypto Market’s Future
Stablecoins have become a major revenue stream for Coinbase, second only to trading. In the first quarter of the year, its stablecoin-related income surged 50% year-over-year. With 50% revenue sharing from USDC, Coinbase stands to benefit significantly from greater adoption of stablecoins under the new legal framework. The GENIUS Act adds further optimism by promising regulatory clarity and business stability.
Circle and Coinbase Stocks Surge After Senate Passes GENIUS Act to Regulate and Expand StablecoinsThe GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins, lays out strict guardrails such as full reserve backing and monthly audits for stablecoin issuers. Although its Senate passage is seen as a significant legislative win for the crypto industry, the bill must still pass through the House. The House has its own version of a stablecoin bill called STABLE, which differs in regulatory structure. Reconciling both versions may take time, especially as House Republicans consider including broader market regulations.
Stablecoin Regulation Set To Boost Growth, Investment, And Innovation Across Crypto Finance Sector
If passed into law, the GENIUS Act could catalyze exponential growth in the stablecoin market, currently valued at nearly $260 billion. This growth would benefit major players like Circle and Coinbase. Circle’s Chief Policy Officer, Faryar Shirzad, highlighted the bill’s potential to unlock substantial investment by providing long-needed regulatory clarity. He noted that bipartisan support for clear rules could attract significant capital to the sector and help shape the future of finance.
Coinbase is capitalizing on this momentum with a new merchant payments product announced Wednesday. The service enables e-commerce businesses to accept stablecoin payments with near-instant settlement and lower fees, directly challenging traditional payment systems. CEO Brian Armstrong reiterated his vision for USDC to surpass Tether as the world’s top stablecoin and suggested that shared economic models could attract more institutional partners. With regulation potentially unlocking stablecoin adoption, Coinbase is positioning itself as a dominant player in the next wave of financial innovation.
