The cryptocurrency market breaks out after new regulations in the U.S.
Shares of Circle, the leading cryptocurrency company, rose 20% on Tuesday, reaching a new peak of $180, after the Senate passed the GENIUS Act, the largest cryptocurrency-related law approved by the U.S. Congress.
This law opens up opportunities for stablecoins, stable cryptocurrencies, used by banks, fintech, and retailers, deeply integrated into the U.S. financial system. Circle just released shares on June 5, and is currently trading 6 times the IPO price of $31.
The content of the GENIUS Act and its impact on the stablecoin market
If approved by the House of Representatives, major stablecoin issuers will have to comply with regulations similar to banks, including anti-money laundering, KYC identity checks, and handling sanctions. This transforms stablecoins from a crypto trading tool into a true payment medium, attracting the interest of leading investors, especially Circle.
Politics and differing views on the risks of cryptocurrency
Senator Kirsten Gillibrand, a co-founder of the legislation, asserted that this act will enable U.S. businesses and consumers to fully leverage new financial initiatives. She also stated that the law will protect consumers, encourage responsible innovation, while maintaining the dominance of the U.S. dollar.
However, at least some remaining Democratic lawmakers oppose it, concerned about potential risks. Senator Elizabeth Warren asserted that the law lacks necessary safeguards to avoid the risk of destabilizing the global financial system that stablecoins could cause.
Major corporations in the cryptocurrency industry and the global market
Circle's CEO, Jeremy Allaire, has supported the new regulations, calling stablecoins the most practical form of cryptocurrency ever invented. He describes stablecoins as a combination of the reliable value of fiat money and the capabilities of blockchain: programmable, instant trading, borderless.
Within weeks, Jeremy’s stock value skyrocketed, reflecting strong confidence in the potential of stablecoins. The cryptocurrency market is booming, with corporations like PayPal, Deutsche Bank, Banco Santander building their own systems based on stablecoins. Even Donald Trump has launched his family's stablecoin, demonstrating the sustainable trend of cryptocurrency in the United States.
Demand and development prospects of Stablecoins
Data shows that in February, the total transaction value of stablecoins reached $4 trillion. Only $6 billion of this came from actual payments outside the crypto market, according to figures from Allium Labs, Visa, Artemis, Dragonfly Capital, and Castle Island Ventures.
Experts at Citigroup predict that the total supply of stablecoins could reach $3.7 trillion by 2030, if regulations are favorable. In the case of delays or the emergence of fraud risks, the market could shrink to around $500 billion, but still double the current size of $250 billion.
Source: https://tintucbitcoin.com/crcl-tang-20-dat-180-usd-moi/
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