Circle Stock Jumps as Senate Passes Landmark Stablecoin Regulation
Shares of Circle Internet Group (CRCL) experienced a significant surge on Friday, June 20, 2025, building on substantial gains seen throughout the week. The positive momentum comes directly after the U.S. Senate approved groundbreaking legislation aimed at regulating stablecoins, a move seen as a major catalyst for the digital currency sector.
The stablecoin issuer, known for its widely used USDC stablecoin (the second largest globally by market share), saw its stock climb sharply, earning its first “buy” rating from Seaport Global analysts in the wake of the Senate vote.
The GENIUS Act: A Regulatory Green Light
The core driver behind Circle’s soaring valuation is the U.S. Senate’s passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act earlier in the week. This landmark bill represents the first major piece of U.S. legislation specifically focused on creating a federal regulatory framework for stablecoins – digital tokens designed to maintain a stable value, typically pegged to the U.S. dollar.
The GENIUS Act aims to provide much-needed clarity and oversight for the stablecoin market. Key requirements include mandates for companies to maintain full reserves backing their stablecoins, undergo regular monthly audits, and adhere to stringent anti-money laundering (AML) standards. Experts believe this clarity could significantly accelerate the adoption of stablecoins by traditional financial institutions like banks, fintech firms, and even major retailers.
While the bill still requires approval from the House of Representatives to become law, its passage in the Senate has been widely interpreted by the market as a crucial “green light” from Washington, signaling a more favorable regulatory environment for stablecoin innovation within the United States.
Circle’s Remarkable Stock Performance
The market’s reaction to the GENIUS Act’s Senate approval has been overwhelmingly positive for Circle. The stock jumped around 20% on Friday alone, contributing to a weekly gain of over 60%. Since its debut on the New York Stock Exchange (NYSE) under the ticker CRCL on June 5th, Circle’s shares have skyrocketed by more than 500%, trading multiple times above its initial public offering (IPO) price of $31. Early trading on its IPO day saw the stock open at $69 and close at $82.23, indicating immediate strong investor interest. Following the Senate vote on Tuesday, Circle’s stock surged 33% on Wednesday, continuing its impressive climb into Friday’s session.
Adding to the bullish sentiment, Seaport Research Partners analyst Jeff Cantwell initiated coverage on Circle with a “buy” rating, setting a price target of $235 per share – approximately 18% higher than the stock’s closing price mid-week. This marks the first buy rating for the company since its public listing.
Broader Implications and Expert Outlook
The positive impact of the GENIUS Act extends beyond Circle. Other crypto-related entities, such as major U.S. exchange Coinbase (COIN), which has a financial relationship with USDC, also saw significant stock gains following the Senate vote.
Industry experts view the GENIUS Act as a potentially transformative development. Alex Thorn, Head of Research at Galaxy Digital, suggested the bill could “meaningfully upgrade dollar payment rails,” leading to faster settlement times, improved transparency, and potentially boosting global dollar dominance and demand for U.S. debt. He highlighted the consumer protections, collateral requirements, and oversight mechanisms within the bill, creating a viable pathway for both new innovators and established financial institutions to leverage public blockchains for international dollar transfers. This increased integration of traditional finance with blockchain technology could, in turn, pave the way for broader adoption of bitcoin, other cryptocurrencies, and decentralized finance (DeFi).
Circle CEO Jeremy Allaire hailed the Senate’s decision, stating that it felt like “History being made” and a step closer to “breakthrough legislation” that would enhance U.S. economic and national competitiveness for decades.
Growing Corporate Interest
The regulatory clarity provided by the Senate’s action appears to be fueling growing interest from major corporations in stablecoin integration. Companies like Amazon, Walmart, Apple, Uber, Airbnb, Meta (Facebook), Google, and X (formerly Twitter) are reportedly exploring the possibility of using or issuing their own stablecoins. Shopify recently announced support for USDC payments, further demonstrating mainstream adoption potential that stands to benefit core stablecoin players like Circle.
Looking Ahead
The passage of the GENIUS Act in the Senate is a pivotal moment for the stablecoin industry and a major win for Circle, positioning it favorably within a newly clarifying U.S. regulatory landscape. While the bill’s journey through the House of Representatives remains, the initial market reaction, analyst endorsements, and increasing corporate interest signal strong investor confidence in the future of regulated stablecoins and Circle’s prominent role within that future. Given Circle’s recent public listing, analysts note that while technical indicators are currently bullish, more trading data is needed for a full long-term assessment.
