The passage of the "GENIUS Act" injects a shot of adrenaline into the stablecoin and crypto industry, leading to a nearly 34% surge in the stock price of Circle, the "first stablecoin stock", a 16% rise for the crypto trading platform Coinbase, and over a 4% increase for Robinhood. However, the act still requires approval from the House of Representatives and needs to be signed by Trump to take effect, and Wall Street insiders maintain an optimistic attitude about the legislation passing this summer.
Taking a step closer to mainstream payments! "The first stock of stablecoin" $Circle (CRCL.US)$ Soaring 34% overnight.
On Wednesday, the U.S. Senate passed the GENIUS Act with a vote of 68-30, establishing a federal regulatory framework for dollar-backed stablecoins. This news instantly triggered a surge in the crypto Sector, with "stablecoin's first stock" Circle's stock price soaring nearly 34%, while the crypto trading platform $Coinbase (COIN.US)$ also rose 16%, $Robinhood (HOOD.US)$ Increased by over 4%.
The passage of the GENIUS Act is viewed as a historic breakthrough for the U.S. crypto industry. The bill aims to clarify the legal status of stablecoins, defining them as digital cash, and promoting widespread use in mainstream payments and settlements, rather than being limited to the current 80-90% use in crypto asset settlements.
Circle co-founder and CEO Jeremy Allaire expressed excitement on the X platform:
"History is being written, the U.S. Senate has passed the GENIUS Act, bringing us one step closer to groundbreaking legislation becoming law."
Although the bill still requires approval from the House of Representatives and needs to be signed into law by Trump, Bernstein Analyst Gautam Chhugani and his team have remained optimistic about the legislation being enacted this summer.
They noted in their early week report:
The intention of the "GENIUS Act" is to bring innovation in stablecoins back to the U.S. market from overseas, clarifying its legal status as digital cash.
Once the bill is passed (possibly by the end of summer), we expect stablecoins to evolve from the currency track of Cryptos to the currency track of the Internet.
As the second largest stablecoin issuer by Market Cap, Circle is seen as a core player for Cryptos to move towards mainstream payments and regulated finance. Since its listing on June 5th, the company's stock price has accumulated a rise of over 543%, soaring from the IPO price of $31 to Wednesday's closing price of $199.59.
ARK's rational retreat, cashing out $0.1 billion at a high.
However, just as the market celebrates regulatory breakthroughs, early institutional investors who bet on Circle have begun to realize their profits.
According to trading disclosures, "Wood", Cathie Wood's ARK Invest (ARK Funds) sold 0.3 million shares of Circle stock on Tuesday, worth about $44.7 million, marking its second consecutive day of large-scale Shareholding reductions. On Monday, ARK had previously cashed out $51.7 million, with two days of cumulative sales reaching 0.643 million shares, totaling approximately $96.5 million, which accounted for 14% of its initial Hold Positions.
Although this sale still has huge floating profits, the timing has sparked market speculation: is it profit-taking or concern over the potential uncertainties following the implementation of regulations?
In contrast, other major shareholders such as BlackRock have not disclosed similar trades, and Circle CEO Jeremy Allaire only plans to sell 8% of his shares (approximately 1.58 million shares).
For a long time, ARK has been known for its steadfast bets on Cryptos and disruptive technologies. As one of the most active institutional supporters of Bitcoin, Wood predicted earlier this year that by 2030, the price of Bitcoin could reach 1.5 million dollars.
Editor/rice
