The cryptocurrency market is experiencing a wave of optimism, fueled by the U.S. Senate's recent passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). This landmark legislation, designed to establish a regulatory framework for stablecoins, has sent shares of Coinbase and Circle soaring, igniting what some are calling a "stablecoin summer."

On Wednesday, June 18, 2025, Coinbase (COIN) closed up 16.32% at $295.29, while Circle (CRCL) jumped 33.82% to close at $199.59. The surge reflects growing investor confidence in the future of stablecoins and the companies that support them. Stablecoins have attracted significant interest due to their potential to make payments faster and cheaper.

The GENIUS Act, which passed the Senate with bipartisan support in a 68-30 vote, is viewed by many in the crypto market as a bullish sign. The bill aims to create a clear regulatory environment for stablecoins, a type of cryptocurrency pegged to the value of a more stable asset, like the U.S. dollar. If signed into law, the bill would require stablecoins to be backed by liquid assets, such as U.S. dollars and short-term Treasury bills. Issuers would also be required to publicly disclose the composition of their reserves on a monthly basis.

Circle, the issuer of USDC, stands to benefit significantly from the GENIUS Act. A large portion of Circle's revenue is derived from interest earned on the reserves backing USDC, which it co-founded with Coinbase in October 2018. Coinbase also stands to gain as it earns 50% of Circle's revenue generated from USDC and 100% of the revenue from USDC on the Coinbase platform.

The GENIUS Act is not the only piece of crypto legislation making its way through Congress. A second, broader measure that would divide the regulation of digital assets between market regulators is also under consideration. However, due to its complexity, this measure may face challenges in the Senate. The GENIUS Act also faces an uncertain future in the House, where Republicans are considering how much to change the Senate's version and whether to combine it with a market structure bill.

Despite these uncertainties, the passage of the GENIUS Act in the Senate is a significant victory for the crypto industry. Proponents say that by setting clearer rules for issuing and managing dollar-pegged tokens, the bill could bring greater legitimacy to the sector.