Investing.com -- Circle Internet (NYSE:CRCL) stock jumped 18% in Wednesday morning trading after the U.S. Senate approved a milestone stablecoin bill, marking a significant step toward regulatory clarity for the crypto sector.
The bipartisan approval represents a potential turning point for cryptocurrency regulation, particularly benefiting Circle as the issuer of USDC, the second-largest stablecoin with a market value of approximately $61.4 billion according to CoinGecko data.
Coinbase (NASDAQ:COIN) shares also rose 10% on the news, while traditional payment giants Mastercard (NYSE:MA) and Visa (NYSE:V) both fell 2%, suggesting investors see the legislation as potentially disrupting established payment networks.
Circle, which went public earlier this month on the New York Stock Exchange, saw its shares reach $175 in morning trading, substantially higher than its IPO price of $31. The company’s flagship product, USDC stablecoin, offers the convenience of cryptocurrency without its characteristic volatility by maintaining a value pegged to the U.S. dollar and backed by reserves.
Before becoming law, the bill, known as the GENIUS Act, must still pass the Republican-controlled House of Representatives and receive President Donald Trump’s signature. The legislation comes as major retailers including Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) have reportedly been exploring issuing their own stablecoins in the U.S. market.
The Senate’s approval signals growing mainstream acceptance of stablecoins, which have evolved from a niche product to an increasingly important component of the digital payments landscape.