Circle’s CRCL shares surged by 34% and closed at $199.59 on June 18 after reaching a new all-time high of $200.90.
This new price milestone represents a significant increase of approximately 6.5 times the company’s initial public offering price of $31 established on June 5.
The price surge occurred following the advancement of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act by the Senate in a 51-23 vote, paving the way for House consideration of the bill.
Circle’s CEO and co-founder, Jeremy Allaire, expressed that “history is being made” after the approval of the GENIUS Act. He emphasized that enacting this legislation into law will enhance US economic and national competitiveness for decades to come.
Discussions regarding the scheduling of the bill will commence next week, with supporters aiming to send it to President Donald Trump before the August recess.
Moreover, equity traders interpreted the vote as a positive catalyst for the sector, with Coinbase’s COIN shares rising by 14% and Robinhood’s HOOD climbing by 4.5%, reaching a new all-time high of $78.35.
Framework for Stablecoins Established by GENIUS Act
The GENIUS Act mandates that payment stablecoin issuers maintain reserves equivalent to outstanding tokens, limit reserves to cash or short-dated Treasuries, prohibit yield payments, and require segregated accounts.
Issuers with liabilities exceeding $10 billion must obtain a federal charter, while smaller firms can operate under qualifying state regulations.
The bill also instructs the Treasury Department to release quarterly audit templates and grants the Commodity Futures Trading Commission limited oversight of spot markets.
Circle issues USDC, the second-largest dollar-pegged stablecoin, and earns interest on Treasuries backing USDC, positioning it to comply with GENIUS without altering its revenue model.
Coinbase shares in that reserve income through a distribution agreement linked to balances held on its platform.
The closing price of Circle on June 18 elevated its market capitalization above $48 billion, solidifying its position as one of the strongest performers on the New York Stock Exchange this year.
