Shares of Coinbase and Circle Explode in Value After US Senate Passes Landmark Stablecoin Bill

The shares of the

crypto exchange

Coinbase (COIN) and the stablecoin company Circle (CRCL) saw significant gains after US senators passed a landmark law to regulate stablecoins.

The US Senate on Wednesday voted 68-30 with bipartisan support in favor of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which would establish a framework for stablecoin issuers.

The bill seeks to require stablecoin issuers to have full asset backing, monthly reserve disclosures and yearly audits for those with over $50 billion in market capitalization.

Says pro-crypto Wyoming Republican Senator Cynthia Lummis after the passage of the bill,

“Today brings us one step closer to becoming a welcoming home for digital asset companies. Now, let‘s finish the job & pass market structure legislation to fulfill POTUS’ vision of becoming the crypto capital of the world.”

Following the development, the shares of Circle surged by 33.82%, closing at $199. The company behind USD Coin (USDC), the second-largest stablecoin by market cap, just launched as a publicly traded company earlier this month with an initial public offering (IPO) price of $31.00 per share.

Coinbases shares also rose by 16.32% and closed at $295.29 on Wednesday.

The House of Representatives must still pass a version of the bill before the proposed legislation heads to President Donald Trumps desk for approval.

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