The regulatory chickens finally came home to roost yesterday, and Circle stock shot up in tandem.
It’s been a crazy few weeks for Circle Internet (CRCL) —marked by a monster IPO, bullish vibes from regulators, and some bold moonshot talk.
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Yesterday’s regulatory breakthrough, though, was arguably Circle’s biggest win yet, potentially echoing through the crypto space for years.
The development adds fresh legitimacy to Circle Internet’s push to make digital dollars mainstream.
Sean Neville, co-founder of Circle Internet Financial Ltd., left, and Jeremy Allaire, chief executive officer of Circle Internet Financial Ltd., are riding a wave of interest in stablecoins after Congress passed a crucial bill.
Why the regulatory clarity on stablecoins matters
For years, we’ve seen stablecoin issuers tiptoe through a maze of state regulations and uncertain federal guidance.
Related: Circle’s stock price surges after stunning CEO comment
This patchwork has forced companies and customers to contend with random enforcement actions, unexpected shutdowns, and hefty compliance costs.
Without clear guidelines at the federal level, even the biggest issuers hesitated to pursue partnerships with traditional banks or savvy money investors.
However, yesterday’s regulatory developments will likely transform stablecoins from experimental tokens into trusted components of the financial system.
With uniform guidelines, banks and fintech firms can feel much more confident about integrating stablecoins like USDC into their platforms.
That opens the door for billions of dollars in on-chain transactions previously stalled by uncertainty. Meanwhile, issuers like Circle Internet, boasting solid audit practices and transparent reserve models, stand to gain immensely.
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Circle Internet and its crypto peers went on a tear yesterday, after the Senate passed the GENIUS Act in a sweeping 68-30 vote.
The landmark legislation offers a clear regulatory framework for stablecoins, bolstering the legitimacy of the crypto space.
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It now moves to the House for potential adjustments. It will then head to President Donald Trump, who wants the bill passed before August.
“This bill will cement U.S. dollar dominance, protect customers, increase demand for U.S. Treasuries, and ensure that innovation in the digital asset space is in the hands of the U.S., not our adversaries,” Sen. Bill Hagerty (R-TN), the bill’s sponsor, said.
Not everyone’s cheering stablecoins, though
Some Democrats slammed the bill, calling it a fast track for Trump-era crypto corruption. Senator Elizabeth Warren, in particular, called it a “super highway” for shady dealings.
In a related move boosting Circle stock, Coinbase will use USDC as collateral for U.S. futures trading—an industry first.
The shift likely brings Circle’s stablecoin deeper into the mainstream, just as Washington is backing crypto.
For context, this Senate vote effectively pays off months of quiet grinding.
It started in March, when Senate Banking went down to brass tacks on the GENIUS Act. By May, things hit a wall. Cloture (a process for ending debate to take a vote) failed, with the Democrats linking the bill to Trump’s personal crypto plays.
Then came the pivot.
Trump, proclaiming himself the “crypto president,” launched his own $TRUMP coin and put his AI and crypto czar into the spotlight.
By mid-June, the bill sailed through with 68 votes, igniting a massive rally in Circle stock. Called it, by the way.
Circle stock rocketed almost 34% yesterday, jumping from roughly $149 to close at $199.59. In after-hours trading, the stock continued its ascent, tacking on another 6.1% to reach $211.87, posting a new 52-week high.
To put things in perspective, Circle stock has soared since its IPO back in early June, jumping 70% in the past week alone.
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