Shares in Circle Internet Group (CRLC) stock are surging on Thursday following the US Senate’s landmark approval of a new stablecoin bill. The legislation commonly known as the “GENIUS Act” is now going to the House of Representatives for review. After any approval there, it will be sent to US President Donald Trump’s desk for final approval.
The stablecoin regulation bill mandates $1 reserves for every $1 of stablecoins and compliance with anti-money-laundering rules. Circle is one of the biggest issuers of stablecoins in the United States, so the Senate approval is a huge win for the company. As a result, Circle (CRLC) stock is up over 15% at press time.
The Genius Act passed the Senate 68-30. It now moves to the House, where passage is viewed in Washington as likely but could take time, according to most reports. Trump has said he wants to sign stablecoin legislation before Congress’s August recess.
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Genius Act Almost Passed: Circle Stock Responds Strongly
The United States government has become far more crypto-accepting since Trump’s return to the White House. The current US President preached support of the crypto industry in his campaign, and has since put forth several initiatives to adopt cryptocurrency as a supportive hedge for the US dollar. Bitcoin and other crypto assets have gone up in value since last November, with BTC notably reaching a new ATH of $111,000 this year. The creation of a crypto task force and proposed crypto stockpile held by the US Treasury has supporters of the industry bullish about its future. A previously mocked and discredited industry known for controversy and crime is now being supported on a federal level, and the stablecoin bill’s approval in the US could be further icing on the cake.
“I think crypto is here to stay and I’d rather have it be American-led,” Sen. Mark Warner (D., Va.), who supported the bill, said in an interview. Other Democrats, though, appear split on the bill. Warner and other moderate lawmakers said it was worth passing legislation to establish at least some guardrails on the industry, but advocates for tighter regulation, such as Elizabeth Warren (D., Mass.), opposed the bill, arguing it puts consumers at risk.
Also Read: Senate Passes GENIUS Act as JPMorgan Meets SEC on Onchain Markets
“The Genius Act lacks the basic safeguards necessary to ensure that stablecoins don’t blow up our entire financial system,” Warren said. The bill mandates that regulators supervise issuers of large stablecoins in some of the same ways they regulate banks. Stablecoin issuers would need to comply with anti-money-laundering rules and sanctions to help ensure they aren’t used by criminals. This has always been a concern with incorporating cryptocurrency, even stablecoins, into federal financial strategy.
