Shares of cryptocurrency firms Coinbase (COIN) and Circle (CRCL) saw significant increases on Wednesday following the passage of the GENIUS Act, a key stablecoin bill, by the US Senate.
This legislative development is anticipated to enhance the legitimacy of stablecoins.
As crypto assets like stablecoins continue to garner legality and exposure, with favourable regulations, early-stage tokens like Bitcoin Pepe will benefit from the market momentum and investor enthusiasm.
Circle and Coinbase pop
Circle’s shares rose over 33%, while Coinbase’s shares gained 16% on Wednesday after the bill’s approval late Tuesday.
Coinbase’s performance made it the top gainer among S&P 500 stocks on Wednesday.
For Circle, the issuer of the USDC stablecoin, this surge builds on its performance since its market debut on June 5, with its shares increasing sixfold from an initial public offering (IPO) price of $31 to approximately 199 on Wednesday.
Coinbase, the largest US cryptocurrency exchange, is a co-founder of USDC and shares 50% of its revenue with Circle.
Stablecoin-related revenue has become an increasingly important component of Coinbase’s earnings, showing a 50% year-over-year increase in the first quarter and a 32% increase from the fourth quarter.
Coinbase CEO Brian Armstrong has publicly stated a goal for USDC to become the world’s leading stablecoin, a position currently held by Tether’s USDT.
USDC’s market capitalisation on Thursday was largely unchanged at $61.48 billion, according to CoinMarketCap data.
The 24-hour trading volume fell over 3% to $10.28 billion.
The Senate is passing the Stablecoin Act, even acts as a cushion for cryptocurrencies as they were largely unaffected by the US Federal Reserve keeping the interest rate unchanged.
On Thursday, Bitcoin was trading around $105,205 while later falling to $104,834.07, as the crypto assets, which are usually sensitive to interest rate and monetary policy expectations, held firm.
The GENIUS Act
The Senate passed the GENIUS Act with a 68-30 vote late Tuesday.
This bill represents a notable advancement for the digital asset industry by establishing a framework for private entities to issue stablecoins.
The legislation mandates that these stablecoins operate under strict oversight, requiring full reserve backing and monthly audits to ensure transparency and stability.
While the GENIUS Act signifies a legislative victory for the crypto sector, it still requires final approval to become law.
The bill will now proceed to the House of Representatives, where a separate, similar piece of legislation, known as the STABLE Act, is currently under consideration.
Bitcoin Pepe continues to surge
Bitcoin Pepe, the new cryptocurrency project, aims to integrate the security features of the Bitcoin blockchain with the speed and scalability typically associated with Solana.
This approach seeks to distinguish it from meme tokens that primarily rely on speculative interest.
The token has garnered significant attention during its ongoing presale.
Bitcoin Pepe has now raised more than $15 million.
According to the development team, Bitcoin Pepe’s native token, BPEP, is scheduled for listing on the MEXC and BitMart exchanges.
These listings are anticipated to enhance the token’s market visibility, improve liquidity, and strengthen its credibility ahead of its full launch.
The Bitcoin Pepe team also issued images to showcase the amount of work they have done on the project.
The project team is expected to make a major listing announcement on June 30.
Additionally, all existing investors are slated to receive a 30% token bonus, adding more returns for investors.
