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'Stablecoin Summer' with rising shares of Coinbase and Circle due to the stablecoin bill
Cryptocurrency entrepreneur Anthony Pompliano says the rise in Coinbase shares indicates that 'Wall Street wants Bitcoin and crypto assets'.
'Stablecoin Summer' with rising shares of Coinbase and Circle due to the stablecoin bill
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Shares of Coinbase and Circle rose on Wednesday after U.S. lawmakers indicated their support for more clearly regulating stablecoins by pushing the GENIUS Act for approval from the House.
On Wednesday, Coinbase (COIN), listed on the Nasdaq, closed the trading day up 16.32% at $295.29, while Circle (CRCL), listed on the NYSE, rose 33.82% to close at $199.59, according to Google Finance data.
The GENIUS Act is a bullish signal for the entire cryptocurrency industry
The demonstration followed last Tuesday's Senate vote with a result of 68 votes to 30 in favor of the GENIUS Act, which was passed just six weeks after being introduced by Senator Bill Hagerty of Tennessee.
Many in the cryptocurrency market see this as a bullish sign for the industry, representing an important step toward creating a regulatory framework for stablecoins.
U.S. President Donald Trump stated in a post on Truth Social on Thursday that the GENIUS Act should be presented to his office 'as soon as possible - without delay', while thanking David Sacks, Senior Advisor on AI and cryptocurrencies at the White House, for fulfilling 'his promise to make the United States the crypto capital of this planet'.
Coinbase, Circle, United States, stablecoin
Source: David Sacks
Circle, the issuer of USDC, is set to benefit
US Dollar to Dollar
$0.9997
- The second-largest stablecoin by market capitalization - from the bill, where most of its revenue comes from interest earned on the reserves backing USDC, which it co-founded in partnership with Coinbase in October 2018.
After the stock rise, cryptocurrency trader Genco said the market 'is slowly discovering that Coinbase gets 50% of the revenue from $CRCL generated by USDC [and] 100% of the revenue from USDC on the Coinbase platform [and] equity share'.
The rise in Circle's stock is the 'talk of the town'
Genco stated, 'It's the summer of stablecoins', acknowledging the Senate’s passage of the GENIUS Act. 'This will be the most significant step forward.' Crypto analyst Tyler D added, 'CRCL is the talk of the town.'
Meanwhile, cryptocurrency entrepreneur Anthony Pompliano pointed to the rise in Coinbase shares as a sign that 'Wall Street wants Bitcoin and crypto assets'.
Coinbase's stock price reached an all-time high of $357, which it hit in November 2021 amid a broader surge in the cryptocurrency market.
Bitcoin
$104,742
Bitcoin reaches new highs of $69,000.
At the time of publication, the highest price for Bitcoin is currently $111,970, which it reached on May 22.
Recent concerns and doubts about future public listings of stablecoins
While Coinbase has been publicly listed since April 2021, Circle has been public for only a few weeks.
On June 5, Circle made a strong entry onto the New York Stock Exchange (NYSE), with its shares rising by 167% in its first trading session.
Related: Coinbase seeks approval from the U.S. Securities and Exchange Commission for 'preferred shares' - report
Some participants in the cryptocurrency market believe this could be the beginning of more stablecoin companies going public, but others are not sure that things will go well.
On Monday, Arthur Hayes, founder of the BitMEX platform, warned that most new public stablecoin companies would be overvalued and fail. Hayes also claimed that Circle's stock price is 'greatly exaggerated'.
