David Edwards
After the U.S. Senate enacted historic stablecoin legislation, Circle, the U.S.-based issuer of USD Coin (USDC), shot to an all-time high on June 18, closing at $199.59. Just two weeks after its $31 IPO price, the steep rally implies a 34% gain for the day and a more than 540% increase.
Circle’s shares, according to Yahoo Finance data, momentarily hit $200.90 before closing the day barely below that level. Investors’ strong need for regulatory clarification in the stablecoin space is demonstrated by the stock’s current price, which is over six times its IPO value.
Senate Approves GENIUS Act, Marks Regulatory Advancement
The rally came after the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill proposing a comprehensive government framework for regulating fiat-backed stablecoins such as USDC, was passed by the Senate on June 17. After passing with a bipartisan vote of 68 to 30, the proposal is now headed to the House of Representatives, where floor voting is anticipated to start next week. Enactment prior to Congress’ August recess is the goal of supporters.
The GENIUS Act gives the government Reserve and the Office of the Comptroller of the Currency regulatory power, requires 100% dollar reserve backing through cash or U.S. Treasuries, and establishes government licensing requirements for stablecoin issuers. Additionally, it creates standards for consumer protection and encourages technical compatibility among blockchain networks.
Institutional stakeholders have mostly supported the GENIUS Act’s goal of unifying regulatory oversight under a national norm, even as states like New York have put in place local regimes like BitLicense.
A Wider Market Reacts Positively
Circle’s remarkable achievement had reverberated throughout the larger digital asset equity market. Robinhood’s stock increased 4.5% to close at a record $78.35, while Coinbase’s shares increased 14% for the day. Investor confidence that federal monitoring will hasten institutional adoption, lower regulatory uncertainty, and promote stablecoin scalability in payment systems and decentralized finance is reflected in the strong market response.
“Circle’s existing commitment to transparency and full-reserve backing positions it as the ideal beneficiary of this legislation,” noted one institutional analyst. Circle’s essential role in the digital dollar infrastructure is strengthened by the widespread use of USDC for tokenized transactions, on-chain settlements, and cross-border payments.
