Senate passes GENIUS Act to regulate stablecoins, leading to surge in crypto stocks.

From Yahoo Finance: 2025-06-20 12:39:00

The Senate passed a bill to establish a federal framework for stablecoins, known as the GENIUS Act, a major step in allowing stablecoins to be used more widely in traditional financial services.

Circle, the issuer of the world’s second-largest stablecoin USDC, saw its stock rise more than 77% this week, with shares up over seven times its IPO price.

President Trump praised the GENIUS Act, calling it a bill that will make America the leader in digital assets, as his ties to the crypto industry deepen through various ventures.

The Trump administration has shown support for the stablecoin market to grow, with Treasury Secretary Bessent projecting the market to exceed $2 trillion by 2028.

Despite its passage, the GENIUS Act faced criticism from some Democrats, like Sen. Elizabeth Warren, who raised concerns about consumer protections and potential conflicts of interest for the president and his family.

The bill’s bipartisan support signals a new era for digital assets, allowing stablecoin issuers to innovate within a clear regulatory framework, leading to more demand for US debt obligations.

Read more: Coinbase, Circle, SRM lead stock rally as Trump cheers GENIUS Act in another dream week for crypto