U.S. crypto stocks skyrocket after Senate passes groundbreaking stablecoin legislation, sparking investor optimism and signalling a major shift in the regulatory landscape for digital assets.
Senate Approval Sparks Crypto Market Surge
Top cryptocurrency-linked stocks soared on Wall Street Wednesday following the U.S. Senate’s approval of a historic stablecoin bill, boosting optimism for wider adoption of blockchain-based digital assets.
The legislation, which passed with strong bipartisan support, is widely seen as a watershed moment for the crypto sector, long plagued by regulatory uncertainty. Investors and analysts hailed the bill as a pivotal step towards legitimising stablecoins—a class of digital assets designed to offer the benefits of cryptocurrency while maintaining a fixed value.
Stablecoins Gain Regulatory Momentum
Unlike traditional cryptocurrencies such as Bitcoin, stablecoins are pegged to fiat currencies like the U.S. dollar and are backed by corresponding reserves. This structure is aimed at eliminating the volatility that has made many digital assets risky investment options.
Shares of Circle Internet Group Inc., the issuer behind the popular USDC stablecoin, surged 20 per cent following the Senate’s vote. The company, which recently made its debut on the New York Stock Exchange, saw its stock climb to US$173.60, a dramatic rise from its IPO price of US$31.
Crypto exchange giant Coinbase Global Inc. also saw its shares jump 14 per cent, while trading platform Robinhood Markets Inc.—which offers retail crypto services—gained 3.4 per cent.
GENIUS Act Poised to Reshape Digital Finance
The proposed legislation, known as the GENIUS Act, now awaits approval from the Republican-controlled House of Representatives. Should it pass, the bill will head to President Donald Trump’s desk for final approval—a move that analysts believe could happen as early as this summer.
“Once passed into a law (likely by the end of summer), we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet,” analysts at brokerage firm Bernstein commented.
If enacted, the GENIUS Act would provide clear regulatory frameworks for the issuance and governance of stablecoins, potentially unlocking new use cases in mainstream finance and e-commerce.
Market Eyes Broader Crypto Reform
The stablecoin bill is one of two major crypto-related pieces of legislation that proponents hope will be signed into law this year. According to analysts at Barclays, the twin legislative push could herald a more robust future for digital assets in the U.S. financial system.
As of this week, stablecoins account for roughly US$256 billion of the broader US$3.3 trillion cryptocurrency market, according to data from CoinMarketCap. Circle’s USDC alone has a market capitalisation of approximately US$61.4 billion, as reported by CoinGecko.
The Senate’s landmark approval marks a defining moment for the crypto industry—one that not only pushes the boundaries of digital finance but could also rewrite the infrastructure of money in the 21st century.
