Key Takeaways
- Circle Internet Group shares surged Wednesday, a day after the Senate passed a bill that would set up federal boundaries for the use of stablecoins.
- The act would open up the use of stablecoins to banks and other businesses.
- The issuer of USDC stablecoins has seen its shares skyrocket since its initial public offering earlier this month.
Shares of USDC stablecoin issuer Circle Internet Group (CRCL) surged 6% Wednesday, a day after Senate passage of the GENIUS Act, which provides a federal government framework for use of the cryptocurrency whose value is tied to the U.S. dollar.
The legislation would open the door for use of stablecoins by banks, financial tech companies, retailers, and others, and was the first major legislation approved by Congress dealing with the digital currency industry.
New York Sen. Kirsten Gillibrand, a Democrat and one of the co-sponsors of the act, said it would “enable U.S. businesses and consumers to take advantage of the next generation of financial innovation” and “protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar.”
The bill now moves on to the House, which has its own version of stablecoin legislation known as the STABLE Act and has some differences from the GENIUS Act.
Circle Internet Group shares only began trading June 5, when they nearly tripled their initial public offering (IPO) price of $31. With today’s surge to about $162 per share, the stock price is almost double its first-day closing level.
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