Circle’s CRCL shares soared 34% and reached a closing price of $199.59 on June 18, reaching a new all-time high of $200.90. This significant price increase is approximately 6.5 times the company’s initial public offering price of $31 on June 5.
The surge in price came following the Senate’s advancement of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in a 51-23 vote, paving the way for the bill to be considered by the House. Circle CEO and co-founder Jeremy Allaire expressed his excitement, stating that “history is being made” with the approval of the bill. He emphasized that the GENIUS Act, once signed into law, will enhance US economic and national competitiveness for years to come.
The House Financial Services Committee staff announced that discussions regarding the scheduling of the bill will commence next week, with the goal of sending the legislation to President Donald Trump before the August recess. This development was seen as a positive catalyst for the sector, as evidenced by the 14% increase in Coinbase’s COIN shares and the 4.5% rise in Robinhood’s HOOD shares, which also reached a new all-time high at $78.35.
The GENIUS Act sets a framework for stablecoins, requiring payment stablecoin issuers to maintain reserves equivalent to outstanding tokens, limiting reserves to cash or short-dated Treasuries, prohibiting yield payments, and mandating segregated accounts. Companies with over $10 billion in liabilities would need a federal charter, while smaller firms could operate under qualifying state regimes. Additionally, the bill tasks the Treasury Department with releasing quarterly audit templates and grants the Commodity Futures Trading Commission limited oversight of spot markets.
Circle, known for issuing USDC, the second-largest dollar-pegged stablecoin, earns interest on Treasuries backing USDC and currently retains those earnings, positioning it well to comply with the GENIUS Act without needing to alter its revenue model. Coinbase also benefits from this reserve income through a distribution agreement linked to balances custodied on its platform.
With the closing price on June 18 propelling Circle’s market capitalization above $48 billion, the new listing emerges as one of the strongest performers on the New York Stock Exchange this year. This positive momentum and regulatory developments indicate a promising future for Circle and the stablecoin sector as a whole.