The past week proved to be eventful for the cryptocurrency sector, with significant developments capturing the attention of the market. Recently, the Senate approved a bill aimed at creating a federal regulatory framework for dollar-pegged cryptocurrencies, commonly referred to as stablecoins. Named the GENIUS Act, this legislation still awaits ratification from the House of Representatives and President Trump. However, its rapid advancement has been positively received by the crypto community, seen as a pivotal leap towards broader acceptance of stablecoins in conventional financial services.
Circle (CRCL), the company behind the world’s second-largest stablecoin, USDC, saw its shares soar, closing the week with an impressive 80% increase. This surge means that the stock has skyrocketed to approximately eight times its initial price from its public offering on June 5. Coinbase Global (COIN), a prominent U.S. cryptocurrency exchange and an essential partner to Circle, also experienced a boost, rising by 27% over the same period. Coinbase holds a minority share in Circle and benefits from revenue generated by USDC transactions.
Meanwhile, SRM Entertainment (SRM), a relatively obscure firm based in Winter Park, Florida, made headlines with its astonishing 661% rise since it announced a partnership with the crypto platform Tron on June 16. This agreement involves purchasing Tron tokens, rebranding as Tron Inc., and enlisting Tron founder Justin Sun as an advisor.
President Trump also engaged in the excitement, praising the GENIUS Act shortly after its passage in the Senate with a vote of 68-30. In a recent post, he referred to the legislation as “an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets.” The president’s optimism stems from the growing connections between his family and the cryptocurrency space, which has seen a flurry of initiatives from entities associated with him, ranging from memecoins to dollar-backed stablecoins and even bitcoin mining.
Following the announcement of a $2.5 billion fundraising effort to acquire cryptocurrencies, the SEC recently approved Trump Media and Technology Group (DJT) to issue equity and debt, enabling the purchase and holding of bitcoin. In a financial disclosure released last week, Trump reported earning $57 million last year from his investments in tokens associated with World Liberty Financial, a decentralized finance project that names him and his sons as advisers. This venture, led by CEO Zach Witkoff, has also launched a stablecoin this year, which was selected as the payment option for the UAE sovereign wealth fund MGX, facilitating a $2 billion investment into the crypto exchange Binance.
Additionally, the founder of Binance, Changpeng Zhao, has been seeking a pardon, as reported by the Wall Street Journal. Tron founder Justin Sun has also invested in two crypto projects linked to Trump, making headlines as the largest holder of Trump’s memecoin. Sun even participated in an exclusive dinner at Trump’s Virginia golf course last month, following a $75 million investment in World Liberty tokens.
The crypto community has hailed the recent progress made in Washington, including the passage of the GENIUS Act, as a “watershed moment” that signifies the integration of digital assets into the financial landscape. Yat Siu, executive chairman of Animoca Brands, a crypto development firm based in Hong Kong, remarked that the bill’s bipartisan support provides a clear regulatory pathway for stablecoin issuers across various sectors, including banking, technology, and gaming.
The Trump administration’s inclination towards expanding the stablecoin market has been evident. Last week, Treasury Secretary Scott Bessent indicated to lawmakers that this legislation could propel the U.S. stablecoin market to exceed $2 trillion by the end of 2028. Given that the GENIUS Act mandates that companies issuing stablecoins maintain a reserve of $1 in cash or short-term U.S. Treasurys for every dollar in stablecoins issued, this growth is expected to lead to increased demand for U.S. debt instruments. Recent analyses from Standard Chartered and Morgan Stanley estimate current U.S. Treasury holdings within the stablecoin market to be between $166 billion and just under $200 billion.
However, the bill has faced criticism from some Democratic lawmakers, including Senator Elizabeth Warren, who expressed concerns about the lack of amendments aimed at enhancing consumer protections. She specifically highlighted a loophole that could allow major retailers and tech companies to issue their own private currencies in the form of stablecoins, stating, “This bill shouldn’t pass without amendments preventing these risks.”
Jeremy Allaire, the CEO and co-founder of Circle Internet Group, noted the potential implications of the GENIUS Act as the issuer of one of the world’s leading stablecoins, underscoring the importance of regulatory clarity in fostering innovation in the digital asset space.
