The recent passing of the GENIUS Act in the US Senate has sparked a surge in the shares of prominent crypto companies Coinbase and Circle. This landmark legislation aims to regulate stablecoins by establishing a framework for issuers to adhere to.
Under the GENIUS Act, stablecoin issuers will be required to maintain full asset backing, provide monthly reserve disclosures, and undergo yearly audits for those with over $50 billion in market capitalization. This move towards regulation has been met with bipartisan support, with 68 senators voting in favor of the bill.
Pro-crypto Wyoming Republican Senator Cynthia Lummis expressed her enthusiasm for the bill’s passage, stating, “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 this development, Circle, the company behind USD Coin (USDC), experienced a significant uptick in its shares, surging by 33.82% and closing at $199. Coinbase, a leading crypto exchange, also saw a rise in its shares by 16.32%, closing at $295.29 on Wednesday.
While the Senate has approved the bill, it still awaits passage in the House of Representatives before it can be sent to President Donald Trump for final approval. The passing of this legislation has been seen as a positive step towards providing a regulatory framework for stablecoins in the US market.
For the latest updates on the crypto industry, follow us on X, Facebook, and Telegram. Don’t miss out on important news by subscribing to our email alerts. Stay informed about price action and explore more content on The Daily Hodl Mix.
(Image Source: Midjourney)