$USDC Coinbase and Circle Surge as Senate Passes Stablecoin Bill.

Shares of Coinbase (COIN, Financials) and Circle (CRCL, Financials) jumped Wednesday after the U.S. Senate passed the GENIUS Act, a bill that could set the stage for broad adoption of U.S. dollar-pegged stablecoins.

Circle, which issued USDC and recently went public, rose 33%; its shares are now trading around $180, up nearly sixfold from the $31 IPO price earlier this month. Coinbase, which co-founded USDC and shares in 50% of its revenue, gained more than 16%.

The GENIUS Act short for Guiding and Establishing National Innovation for U.S. Stablecoins would require issuers to maintain full reserves and undergo monthly audits. The bill still needs to clear the House, where a competing version splits regulatory authority among agencies including the Federal Reserve and Comptroller of the Currency.

Coinbase earns all interest on USDC held on its platform and has seen stablecoin-related income surge 50% year over year. CEO Brian Armstrong recently said he expects USDC to challenge Tether as the dominant global stablecoin.

Circle Chief Policy Officer Faryar Shirzad told a media outlet that the legislation could unlock new investment, saying it clarifies the rules and could help accelerate stablecoin integration into the financial system.

Coinbase also announced a new merchant payments product Wednesday, allowing e-commerce businesses to accept USDC with near-instant settlement a move that challenges traditional payment networks.