The U.S. Senate passed the GENIUS Act, a landmark bill to regulate stablecoins, with strong bipartisan support (68-30 vote).
The act aims to establish a clear regulatory framework for stablecoins, requiring 1:1 backing by liquid assets and monthly disclosures.
Major crypto-related stocks, including Coinbase (COIN), Circle (CRCL), and SRM Entertainment (SRM), saw significant surges following the news.
President Donald Trump publicly supported the GENIUS Act, urging its swift passage to his desk.
The legislation is seen as a major step towards making the U.S. a global leader in crypto innovation and could unlock significant growth in the stablecoin market.
The cryptocurrency market is experiencing a significant uplift this week, driven by a pivotal development in U.S. regulatory landscape. The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act successfully passed the Senate with a decisive 68-30 bipartisan vote. This landmark legislation, aimed at creating a comprehensive federal framework for stablecoins, has ignited a wave of optimism across the digital asset sector, leading to substantial rallies in key crypto stocks.
The GENIUS Act, introduced by Tennessee Senator Bill Hagerty, represents a watershed moment for the crypto industry, providing much-needed regulatory clarity for digital currencies pegged to traditional assets like the U.S. dollar. The bill mandates that stablecoins must be 1:1 backed by highly liquid assets, such as U.S. dollars and short-term Treasury bills, and requires issuers to publicly disclose the composition of their reserves on a monthly basis. This framework is designed to instill greater confidence and stability in the burgeoning stablecoin market, which is currently valued at nearly $260 billion.
Following the Senate’s approval, major players in the crypto space witnessed impressive stock performance. Coinbase (COIN), a leading cryptocurrency exchange, saw its shares climb by 16.32% to $295.29, signaling strong institutional interest in the evolving crypto landscape. Crypto entrepreneur Anthony Pompliano remarked that Coinbase’s surge indicates “Wall Street wants Bitcoin and crypto assets,” highlighting the broader market sentiment.
Meanwhile, Circle (CRCL), the issuer of USDC, the second-largest stablecoin by market capitalization, experienced an even more dramatic rise, with its stock soaring by 33.82% to $199.59. As a primary beneficiary of stablecoin regulation, Circle stands to gain significantly from the GENIUS Act, given that a substantial portion of its revenue is derived from interest earned on USDC reserves. Circle’s recent public listing on the NYSE, where its shares initially jumped 167%, underscores the market’s anticipation for such regulatory advancements.
Even SRM Entertainment (SRM), a company less directly tied to stablecoin issuance but recently making headlines for a reverse merger with Tron, also saw a notable increase of 35% in its stock price, as reported by Tiger Brokers.16 This indicates a broader positive sentiment radiating across various segments of the crypto industry.
The political backing for the GENIUS Act has also been a significant catalyst. President Donald Trump, a vocal proponent of fostering crypto innovation in the U.S., publicly urged the House of Representatives to swiftly pass the bill. In a post on Truth Social, President Trump stated his desire to get the GENIUS Act to his desk “ASAP — NO DELAYS.” This sentiment was echoed by White House AI and crypto czar David Sacks, who thanked Trump for delivering on his “promise to make the USA the crypto capital of the planet.”
The GENIUS Act is seen as more than just stablecoin regulation; it’s a potential catalyst for wider crypto adoption. By providing clear rules and consumer protections, the bill aims to bolster confidence for investors, financial institutions, and businesses, potentially encouraging them to treat stablecoins as a more legitimate and trustworthy currency. This, in turn, could pave the way for increased mainstream acceptance of the broader cryptocurrency ecosystem, including major digital assets like Bitcoin and Ethereum.
While the reception has been largely positive, some critics have raised concerns regarding potential implications for existing bankruptcy law and the possibility of favoring industry insiders. However, proponents emphasize that the benefits of regulatory clarity and consumer protection outweigh these concerns, setting the stage for a new era of growth and stability in the U.S. crypto market. The bill now moves to the House of Representatives for approval, with strong indications of a successful passage before Congress’s August recess.
Recent performance of key crypto stocks:
Company Ticker Price (Close Jun 19, 2025) Daily Change (%) Coinbase COIN $295.29 +16.32% Circle CRCL $199.59 +33.82% SRM Ent. SRM $8.20 +35%
Source: Google Finance data, Tiger Brokers
The passage of the GENIUS Act marks a significant turning point, promising a more regulated yet potentially more expansive future for stablecoins and the broader crypto market in the United States. The industry is watching closely as the bill progresses to the House, eager to embrace what many are calling a “Stablecoin Summer.”
The post Crypto Market Surges as GENIUS Act Advances, Trump Backs Stablecoin Legislation appeared first on Cryptopress.
