Coinbase and Circle saw their stock prices rise significantly on Wednesday after U.S. lawmakers expressed support for clearer regulations on stablecoins by advancing the Genius Act for home approval.
On that day, Coinbase (Coin) listed on Nasdaq closed up by 16.32%, reaching $295.29, while Circle (CRCL), traded on the NYSE, rose 33.82% to $199.59, according to Google Finance data.
The Genius Act’s Positive Impact on Crypto
This surge occurred shortly after the bill was introduced by Senator Bill Hagerty from Tennessee, which followed a 68-30 vote in the Senate on Tuesday. Many within the crypto sector view this as a promising development, seeing it as a strong step towards establishing a stable regulatory environment.
Former President Donald Trump mentioned in a post on Truth Social that he would push for the Genius Act to be enacted “as soon as possible—no delays.” Meanwhile, David Sacks, the White House AI and Crypto Czar, thanked Trump for aiming to make America the global center for crypto.
Circle, the issuer of USDC, which ranks as the second-largest stablecoin by market cap, is likely to gain from this legislation due to the interest it earns that backs USDC. This coin was co-founded with Coinbase in October 2018.
After the stock surge, crypto trader Genco noted that the marketplace is slowly recognizing that Coinbase generates a substantial portion of its revenue from USDC transactions.
Circle’s Stock Gains and Industry Sentiment
Amidst soaring stocks, Genco remarked on the Genius Act’s passage, calling it a transformative moment. Another crypto analyst, Tyler, added that CRCL’s connections to local narratives were becoming increasingly clear.
Additionally, crypto entrepreneur Anthony Pipriano pointed out that the rising Coinbase stock prices signal a growing interest from Wall Street in Bitcoin and other crypto assets.
Coinbase historically peaked at $357 back in November 2021, while the all-time high for Bitcoin reached $111,970 on May 22nd.
Concerns Surrounding Future Stablecoin Listings
Coinbase has been publicly traded since April 2021, while Circle debuted recently with a remarkable 167% jump in its first trading session on the NYSE on June 5.
Some in the crypto community speculate that more stable companies could enter the scene due to this momentum, although there are voices of skepticism. Bitmex founder Arthur Hayes warned that many new public stablecoin firms may be entering the market overvalued and could face failure, indicating that Circle’s current stock price looks excessively high.
This piece is not intended as investment advice; engaging in trading and investment involves risk, and individuals should conduct their own research when making decisions.
