FX168 Financial News (North America) reports that Coinbase, Circle, and SRM stocks have surged. Trump supports the GENIUS Act, and Cryptos are welcoming another "Dream Week". Here are the major events that happened this week.
A few days ago, the U.S. Senate passed a bill proposed to establish a federal regulatory framework for USD-pegged cryptocurrencies (i.e., "stablecoins").
This proposal, named the GENIUS Act, still requires approval from the House of Representatives and President Trump, but its rapid advancement has been seen by the crypto industry as an important breakthrough for the widespread use of stablecoins in the traditional financial system.
Meanwhile, the issuer of the world's second-largest stablecoin, USDC, Circle (stock code CRCL), saw its stock price soar over 77% this week, increasing over 7 times since its IPO on June 5.
Circle's important partner, the major U.S. cryptocurrency Exchange, Coinbase (COIN), also benefited from this tailwind and rose over 25% this week. Coinbase holds a minority stake in Circle and shares profits from its USDC stablecoin revenue.
However, the most astonishing increase belongs to the lesser-known, Florida-based theme park and entertainment derivatives company SRM Entertainment (SRM). Since announcing on June 16 its agreement with the crypto platform Tron, the stock price of SRM has skyrocketed by approximately 777%. The agreement includes: starting to purchase TRX tokens, renaming the company to Tron Inc., and inviting Justin Sun to serve as an advisor.
Trump also joined the crypto frenzy, stating that the GENIUS Act will make the U.S. the "undisputed leader" in digital assets.
The day after the Senate overwhelmingly passed the bill with a vote of 68 to 30, Trump publicly stated that this legislation is "an incredible bill that will make the U.S. the undisputed leader in the field of digital assets."
Trump's excitement is actually easy to understand—as the Crypto Industry achieves successive victories in Washington this year, the Trump family is deepening its ties with this sector.
Companies related to Trump or his family have ventured into various fields, from issuing meme coins and dollar stablecoins to Bitcoin mining.
Trump Media & Technology Group (DJT) recently announced the completion of a $2.5 billion financing round for purchasing cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) approved the company's issuance of Stocks and Bonds last week to conduct Bitcoin investment Business.
In the latest financial report, Trump stated that he earned $57 million last year by holding tokens linked to the World Liberty Financial project, which is a decentralized finance program that lists Trump and his son as advisors.
Family, politics, blockchain—this is the power puzzle of Crypto Capital.
The CEO of World Liberty is Zach Witkoff, who is the son of Trump's Middle East envoy Steve Witkoff. This project launched a stablecoin earlier this year, which was chosen as a payment tool by the UAE sovereign wealth fund MGX, providing $2 billion financing to the Exchange Binance. According to The Wall Street Journal, Binance founder Changpeng Zhao (CZ) is seeking a pardon in the U.S.
Earlier this month, the U.S. Securities and Exchange Commission announced the withdrawal of its civil enforcement lawsuit against Binance, which has alleged securities violations since June 2023.
Justin Sun is also an important financier of Crypto projects related to Trump. He is the largest holder of Trump's meme coin and attended a private dinner held at Trump’s Virginia golf course last month. Previously, he invested $75 million in the World Liberty project.
The GENIUS Act is hailed as a 'watershed moment' for the crypto industry.
Trump's success with the GENIUS Act is seen as a watershed moment in the crypto world, marking that digital Assets have become part of the financial system, said Yat Siu, Executive Chairman of the Hong Kong-based crypto development and investment Institutions Animoca Brands.
The bill has bipartisan support, which provides a clear innovation green light for stablecoin issuers, including Banks, Technology, and gaming companies.
The Trump administration has also recently expressed support for the development of the stablecoin market. Treasury Secretary Scott Bessent told Congress last week that this legislation is expected to elevate the scale of the U.S. stablecoin market to over 2 trillion dollars by 2028.
Under the bill, issuers must hold an equivalent amount of Cash or short-term U.S. Treasury Bonds as reserves for every 1 dollar of stablecoin issued, meaning the expansion of the stablecoin market will directly drive the growth of demand for U.S. Treasuries.
According to the latest estimates from Standard Chartered Bank and Morgan Stanley, the current scale of U.S. Treasuries held by the stablecoin market is between 166 billion to 200 billion dollars.
Controversies remain: Democrats are concerned about the loopholes in the benefits transfer involving 'big companies + presidential family'.
However, the GENIUS Act is not without controversy.
Some Democratic Party members, including Senator Elizabeth Warren, have strongly criticized the failure to pass key amendments aimed at strengthening consumer protection and restricting the benefits to family stakeholders of the president.
"The GENIUS Act has significant loopholes that allow large Technology companies and retail giants to issue private currencies wrapped in stablecoins," Warren said.
"This bill should not pass without incorporating amendments to mitigate these risks."
