In a significant development for the cryptocurrency sector, the Senate has recently approved a bill aimed at creating a federal framework for stablecoins, which are cryptocurrencies pegged to the value of traditional currencies like the US dollar. Known as the GENIUS Act, this legislation still requires the green light from the House of Representatives and President Trump. However, its rapid advancement has been celebrated within the crypto community, as it represents a crucial stride toward broader adoption of stablecoins in conventional financial services.
Circle (CRCL), the issuer of USDC—the world’s second-largest stablecoin—has seen its shares soar, closing with an impressive 80% increase over the past week. Remarkably, this stock has surged to nearly eight times its original price at its IPO on June 5. Likewise, Coinbase Global (COIN), a major US cryptocurrency exchange and a key partner of Circle, has also benefited from this positive momentum, experiencing a 27% increase for the week. Coinbase holds a minority stake in Circle and shares in the revenue generated from USDC.
In an even more astonishing turn of events, SRM Entertainment (SRM), a lesser-known theme park and merchandise company based in Winter Park, Florida, has skyrocketed by approximately 661% since revealing a partnership with the crypto platform Tron. This agreement includes plans to purchase Tron tokens, rebrand the company as Tron Inc., and appoint Tron founder Justin Sun as an adviser.
President Trump has also entered the spotlight in this unfolding narrative. Following the Senate’s passage of the GENIUS Act with a vote of 68-30, Trump referred to the bill in a social media post as “an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets.” His enthusiasm is not unfounded; the crypto industry has made significant gains in Washington this year, and Trump’s family has expanded their connections within this sector. His family’s businesses have engaged in various crypto-related ventures, from creating meme-based cryptocurrencies to mining Bitcoin.
Recently, the Trump Media and Technology Group announced a successful $2.5 billion fundraising initiative intended for cryptocurrency investments. Just last week, the SEC approved the group’s plans to issue equity and debt for acquiring Bitcoin. In a financial disclosure released a week ago, Trump revealed earning $57 million last year from token holdings associated with World Liberty Financial, a decentralized finance project that lists him and his sons as advisers. This venture has also introduced a stablecoin that was selected as the payment method for a $2 billion fundraising deal with the UAE sovereign wealth fund, MGX, meant for the crypto exchange Binance.
In addition, Tron founder Justin Sun has shown strong support for ventures linked to Trump. As the largest holder of Trump’s meme coin, Sun participated in an exclusive dinner at Trump’s golf course in Virginia last month. Prior to that, he invested $75 million into the World Liberty tokens. The recent success of crypto in the political arena, highlighted by President Trump’s endorsement and the passage of the GENIUS Act, has been hailed by industry leaders as a pivotal moment. Yat Siu, chairman of Animoca Brands, stated that this legislation signals the integration of digital assets into the financial system, allowing stablecoin issuers from various sectors to innovate under a clearer regulatory environment.
The Trump administration appears committed to fostering the growth of the stablecoin market. Treasury Secretary Scott Bessent recently indicated that this legislation could propel the US stablecoin market to exceed $2 trillion by 2028. The GENIUS Act mandates that companies issuing stablecoins maintain $1 in cash or short-term US Treasuries for every dollar in stablecoins they distribute, which is expected to increase demand for US debt instruments. Current estimates from analysts at Standard Chartered and Morgan Stanley suggest that stablecoins already hold between $166 billion and $200 billion in US Treasury securities.
However, the bill has faced criticism, particularly from some Democratic senators, including Elizabeth Warren. She expressed concerns regarding a lack of consumer protections and the bill’s provisions that could allow the president and his family to benefit from the legislation. Warren pointed out that the GENIUS Act contains significant loopholes that could enable large tech firms and major retailers to issue their own private currencies structured as stablecoins, arguing that the bill should not pass without amendments addressing these issues.
In a related note, Jeremy Allaire, CEO and co-founder of Circle Internet Group, was seen shaking hands with co-founder Sean Neville outside the New York Stock Exchange on the day of their IPO. The positive developments in the crypto sector continue to unfold, indicating a transformative period for digital assets.
