Coinbase stock (COIN) jumped more than 14% Wednesday after the Senate approved sweeping new legislation to regulate stablecoins, offering the most concrete signal yet that Washington is getting serious about crypto.
The bill, dubbed the GENIUS Act, passed with a solid 68–30 vote, laying out federal rules for how stablecoins are issued, backed, and audited. The crypto market took that as a green light.
Shares of Coinbase hit a session high of $295.33, closing at $294.00—up $40.15 from Tuesday’s close. It was one of the top gainers in the S&P 500, fueled by a mix of policy clarity and a new stablecoin payments initiative from the company.
This isn’t just about regulatory headlines. Coinbase, which has spent the last year rebranding itself as more than just a trading platform, now sees stablecoins as the next pillar of its business. The company’s announcement of tools to enable on-chain dollar payments lined up perfectly with the Senate’s timing—and the market noticed.
The Policy Shift Behind the Rally
The GENIUS Act puts stablecoins—tokens that peg their value to the U.S. dollar—under a regulatory framework that looks more like a banking product than a crypto asset.
Under the new rules, only licensed banks or qualified nonbanks can issue stablecoins. The coins must be backed 1:1 with cash or short-term Treasuries, and issuers have to publish monthly audits of their reserves.
It’s the kind of basic transparency Wall Street has demanded for years. And now it’s finally here, at least in the Senate.
For crypto infrastructure players like Coinbase, Circle, and Robinhood, this represents a shift from legal limbo to operational clarity. For investors, it means fewer surprises—and more room to price in long-term value.
Circle Steals the Spotlight
While Coinbase made headlines, it was Circle (CRCL) that delivered the most eye-popping move. The USDC issuer, which went public just two weeks ago at $31, traded as high as $179 on Wednesday—marking a nearly 480% gain since its IPO.
Circle’s jump reflects more than hype. As the largest issuer of a compliant stablecoin, it now stands to dominate the market that the GENIUS Act just legitimized.
Retail favorite Robinhood (HOOD) also saw a lift, up about 3%, likely riding the wave of optimism rather than on any specific product news.
Bitcoin Miners Join the Party
Even Bitcoin infrastructure stocks, which aren’t directly tied to stablecoins, caught a bid. Riot Platforms (RIOT) saw heavy trading volume—over 36 million shares—and closed up slightly at $9.95. It’s a modest move, but the message was clear: the market sees clearer crypto rules as good for everyone in the ecosystem.
Bigger Than One Bill
The GENIUS Act still needs to get through the House, where it will be reconciled with the STABLE Act, another regulatory proposal. But the momentum is real.
For months, crypto firms have been asking for something—anything—resembling legal guardrails. Now they’ve got it. Analysts say this opens the door for broader adoption by institutions: banks, fintechs, even retailers could begin integrating stablecoin infrastructure into everyday transactions.
According to Reuters, the total stablecoin market cap is now around $252 billion, an all-time high. The signal is clear—this isn’t niche anymore. This is a structural shift.
One Complication: The Trump Angle
There’s one subplot that’s raising eyebrows. As AP News reported, members of President Trump’s family are tied to a token project known as USD1. The GENIUS Act bans Congressional members from profiting off stablecoin activity—but it does not bar the executive branch or their families.
Critics are already pointing to the loophole. Whether it becomes a sticking point as the bill moves through the House remains to be seen. But in a hyper-partisan Congress, don’t be surprised if this angle comes back with more heat.
The Coinbase Bet
Coinbase is making a bet that goes beyond trading fees. If stablecoins become what analysts are calling the “internet’s money rail”, then whoever controls the pipes wins. That’s the subtext behind Wednesday’s rally: this isn’t just a bounce, it’s a strategic pivot.
By launching products that use stablecoins for real-time, cross-border payments, Coinbase is aiming at both fintechs and legacy payment giants. And now, for the first time, the regulatory environment is starting to match that ambition.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
