Shares of Coinbase Global (COIN) experienced a substantial surge of 11% on Wednesday afternoon, positioning it as the top gainer in the S&P 500. This rise came on the heels of the Senate’s approval of the GENIUS Act, which aims to establish federal regulations for the use of stablecoins.
The GENIUS Act would facilitate the adoption of stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar—by various entities, including banks, fintech companies, and retailers. This marks a significant step as it represents the first major legislation from Congress addressing the digital currency sector.
In addition, shares of Circle Internet Group (CRCL), the issuer of the USDC stablecoin, also saw a dramatic increase, rising by 20% in recent trading.
The bill will now advance to the House of Representatives, where it will encounter the STABLE Act, a competing piece of legislation that differs from the GENIUS Act.
Prior to Wednesday’s trading session, Coinbase shares had shown a modest increase of just over 2% for the year.