Digital asset markets erupted in celebration Wednesday. Stocks tied to cryptocurrency platforms soared dramatically. This powerful rally followed crucial U.S. Senate action. Lawmakers passed the groundbreaking GENIUS Act. This bill establishes clear rules for dollar-backed stablecoins. Investors instantly cheered the long-awaited regulatory clarity. Consequently, confidence flooded the crypto sector. Major companies saw their share prices rocket upwards.
Circle Rockets on Regulatory Breakthrough
Circle Internet Financial (CRCL) spearheaded the massive gains. Its stock skyrocketed an astonishing 34% during Wednesday’s session. Furthermore, shares climbed another 6% in after-hours trading. This surge propelled Circle’s price to $199.59 at the close. Later, it even hit a high of $211.87.
Circle has now surged over 540% since its June 5th debut. Trading volume exploded to 60 million shares. That figure nearly doubled the stock’s average daily volume. Circle’s market cap now towers above $48 billion. It easily dwarfs several traditional payments giants. Clearly, investors see Circle as the prime winner. The company issues the USDC stablecoin, ranked second globally.
The GENIUS Act
The Senate approved the Payment Clarity for Stablecoins Act (GENIUS Act). This legislation outlines how U.S. firms can operate. Specifically, they can issue and manage fiat-backed stablecoins. These digital tokens aim to function like digital cash equivalents. The bill defines them legally as “payment stablecoins”. Therefore, their treatment aligns closer to traditional digital money.
This framework is vital for mainstream adoption. However, the journey isn’t complete yet. The GENIUS Act still needs House approval. Furthermore, it requires President Donald Trump’s signature. Despite this, the Senate vote signals strong bipartisan backing. Lawmakers support bringing crypto payments under U.S. oversight.
Historic Moment
Industry leaders enthusiastically welcomed the Senate’s decision. Circle CEO Jeremy Allaire declared, “History is being made.” He posted this statement on social media platform X. Allaire called the bill a breakthrough for American competitiveness. He believes it will drive economic strength for decades.
Similarly, President Trump voiced strong approval. He posted on Truth Social about the legislation. Trump stated the bill makes America the “undisputed leader in digital assets”. “Digital assets are the future,” Trump asserted. He added, “Our nation is going to own it.” Analysts reinforced this optimistic view. Bernstein analysts initiated coverage on Circle this week. They stated the bill would “re-shore stablecoin innovation”. Analyst Gautam Chhugani explained its significance. “The bill clearly defines stablecoins as payment stablecoins,” Chhugani noted. This clarity opens doors beyond crypto-specific uses.
Market Roars Beyond Circle
The rally extended far beyond just Circle. Other major crypto players experienced substantial gains. Coinbase Global (COIN), a USDC co-founder, jumped 10-16%. It became a top S&P 500 performer on June 18th. Coinbase gains significant revenue from stablecoins. This revenue surged 50% year-over-year in Q1 2025. Additionally, it earns all interest on USDC held on its platform.
Robinhood Markets (HOOD) also climbed higher. Its shares gained 3.4-4.5%, reaching a record $78.35. Robinhood benefits from its crypto trading exposure. Furthermore, miner Riot Platforms (RIOT) joined the surge. Its stock rose significantly on the broader market enthusiasm. Traditional payment networks felt pressure. Stocks like Visa (V) and Mastercard (MA) slid. Stablecoins present a growing competitive threat.
What Comes Next?
The immediate market reaction was overwhelmingly positive. Investors clearly crave regulatory certainty. The $260 billion stablecoin market anticipates massive growth. Passage could spur mainstream adoption across finance. Nevertheless, caution remains necessary.
The bill must still clear the House of Representatives. Then, President Trump must sign it into law. Stock performance in this sector stays highly volatile. Short-term sentiment, however, points firmly upwards. Wednesday’s historic Senate vote ignited the crypto market. It signals a potential new era for digital dollars in America.
Written By Fazal Ul Vahab C H
