Circle Rockets After Stablecoin Bill Clears Senate, Pushes Post-IPO Rally to Over 500%
Circle (NYSE: CRCL) experienced a dramatic surge in its stock price, soaring 34% on Wednesday, with an additional 6% increase in after-hours trading, reaching a high of $211.87. This significant jump, fueled by the U.S. Senate’s passage of the GENIUS Act, propelled Circle’s stock to a remarkable 540% increase since its June 5th debut. The GENIUS Act lays the groundwork for regulated, dollar-backed stablecoins, marking a potential turning point for crypto payments within the U.S. regulatory framework.
The Senate’s bipartisan support for the bill underscores a significant shift towards integrating crypto payments into the mainstream financial system. While the bill still requires House approval and the President’s signature, the Senate vote strongly suggests the likelihood of its passage. Circle CEO Jeremy Allaire hailed the bill as a major breakthrough for American competitiveness, a sentiment echoed by President Trump, who declared on Truth Social that the bill would make the U.S. the “undisputed leader in digital assets.”
Circle, the issuer of USDC, the world’s second-largest stablecoin, has consistently advocated for clear regulatory frameworks around crypto dollars. The substantial increase in Circle’s stock price reflects investor confidence in the company’s position to benefit significantly from the formal acceptance of stablecoins as digital cash equivalents within the U.S. Trading volume surged to over 60 million shares, nearly double the average, with CRCL fluctuating between $148 and $200.89 throughout the day. This surge has elevated Circle’s market cap to over $48 billion, surpassing several established payment firms.
Bernstein analysts, who initiated coverage on CRCL earlier this week, believe the bill will “re-shore stablecoin innovation,” attracting activity back from offshore issuers to regulated U.S. players. Analyst Gautam Chhugani highlighted the bill’s clear definition of stablecoins as payment stablecoins, emphasizing their legal resemblance to digital cash and the potential for mainstream adoption beyond the cryptocurrency sector. The passage of the GENIUS Act potentially positions compliant stablecoins as the “money layer of the internet,” opening doors for wider integration and acceptance.
