The shares of the crypto exchange Coinbase (COIN) and the stablecoin company Circle (CRCL) saw significant gains after US senators passed a landmark law to regulate stablecoins.
The US Senate on Wednesday voted 68-30 with bipartisan support in favor of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which would establish a framework for stablecoin issuers.
The bill seeks to require stablecoin issuers to have full asset backing, monthly reserve disclosures and yearly audits for those with over $50 billion in market capitalization.
Says pro-crypto Wyoming Republican Senator Cynthia Lummis after the passage of the bill,
“Today brings us one step closer to becoming a welcoming home for digital asset companies. Now, let’s finish the job & pass market structure legislation to fulfill POTUS’ vision of becoming the crypto capital of the world.”
Following the development, the shares of Circle surged by 33.82%, closing at $199. The company behind USD Coin (USDC), the second-largest stablecoin by market cap, just launched as a publicly traded company earlier this month with an initial public offering (IPO) price of $31.00 per share.
Coinbase’s shares also rose by 16.32% and closed at $295.29 on Wednesday.
The House of Representatives must still pass a version of the bill before the proposed legislation heads to President Donald Trump’s desk for approval.
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