On June 17, 2025, the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with a bipartisan 68-30 vote, marking a historic milestone for the cryptocurrency industry by establishing the first federal regulatory framework for stablecoins—digital tokens pegged to assets like the U.S. dollar. This development directly boosted Circle Internet Group (NASDAQ: CRCL), the issuer of the USDC stablecoin, with its shares rising 5.3% in premarket trading on June 18, 2025, and continuing an upward trend since its IPO earlier that month.
Why Circle Shares Surged
- Market Position: Circle’s USDC, a dollar-backed stablecoin, is a leading player in the $250 billion stablecoin market, benefiting from the regulatory clarity provided by the GENIUS Act. The legislation requires stablecoins to be backed by liquid assets (e.g., U.S. dollars, short-term Treasury bills) and mandates monthly reserve disclosures, aligning with Circle’s compliance-first approach.
- Stock Performance: Since its IPO on June 5, 2025, at $31 per share, Circle’s stock has soared over 380%, closing at approximately $151 on June 17 and reaching an all-time high of $165.60, driven by stablecoin legislation hype and interest from major corporations like Amazon and Walmart.
- Investor Sentiment: Posts on X reflect bullish enthusiasm, with users noting Circle’s strategic advantage as the “right company, right time” and predicting further gains due to its established tech stack and lack of public competitors in the stablecoin space.
Key Features of the GENIUS Act
- Regulatory Framework: The bill sets standards for stablecoin issuers, including full reserve backing, anti-money laundering (AML) compliance, and monthly audits. It allows issuance by banks, fintechs, and retailers under federal or state oversight, with the Treasury Department holding significant authority.
- Consumer Protections: Criminal penalties for non-transparent reporting and a ban on members of Congress (but not the president) profiting from stablecoins address some consumer and ethical concerns.
- Bipartisan Support: Despite initial Democratic resistance in May 2025 over concerns about foreign issuers and Trump’s crypto ventures (e.g., World Liberty Financial’s USD1 stablecoin), negotiations led to stronger AML provisions and restrictions on Big Tech issuers, securing 16 Democratic votes.
Broader Implications
- Industry Growth: The legislation is expected to grow the U.S. stablecoin market to over $2 trillion by 2028, per Treasury Secretary Scott Bessent, encouraging traditional firms like Bank of America and retailers like Walmart to explore stablecoin issuance.
- Global Impact: By favoring U.S.-regulated issuers like Circle, the bill may pressure foreign competitors like Tether (USDT), which faces scrutiny for weaker oversight. X posts suggest Circle will be favored, while Tether could be “squeezed.”
- Next Steps: The bill now heads to the House, which is considering its own STABLE Act. Differences in regulatory oversight (Treasury vs. multiple agencies) and foreign issuer rules must be reconciled before President Trump can sign it into law, potentially before the August 2025 recess.
Criticisms and Concerns
- Trump’s Conflicts: Democrats, including Sen. Elizabeth Warren, criticized the bill for not barring President Trump from profiting via his World Liberty Financial, which issued USD1. Trump earned $57 million from token sales in 2024, raising corruption concerns.
- Foreign Issuer Loopholes: The bill’s handling of foreign stablecoins like Tether remains contentious, with critics arguing it lacks robust restrictions on decentralized exchanges.
- Big Tech Risks: Despite restrictions, some Democrats worry that tech giants like Meta or Amazon could still issue stablecoins, potentially disrupting financial systems.
Sentiment on X
X posts highlight Circle’s dominance, with users like @LumidaWealth calling the GENIUS Act a “win for Circle” and predicting increased institutional adoption. However, some, like @ConsensusGurus, anticipate a potential $CRCL sell-off post-passage due to profit-taking.
Conclusion
The Senate’s passage of the GENIUS Act has propelled Circle’s shares upward, reflecting its strong position in the stablecoin market and investor confidence in regulatory clarity. While the bill promises to mainstream stablecoins and bolster U.S. dollar dominance, concerns about political conflicts and foreign issuers persist. The House’s next moves will be critical to finalizing this landmark legislation.
If you want real-time stock updates, deeper analysis of the STABLE Act, or more X sentiment, let me know!
