Donald Trump Urges House to Pass GENIUS Stablecoin Act
US President Donald Trump urged Congress to pass the GENIUS Stablecoin Act promptly. The act aims to bolster the US crypto industry and is seen as a step toward maintaining dollar dominance in global finance.
- The Senate approved the GENIUS Act with a 68-30 vote on June 17.
- Trump emphasized the urgency in a message, requesting no delays in sending the bill for his signature.
- Treasury Secretary Scott Bessent highlighted the administration's commitment to making the US a digital asset hub.
- Senator Bill Hagerty stated that the act would allow businesses to settle payments quickly, reducing transaction delays.
Market Reactions
Following optimism around the GENIUS Act, shares of Coinbase Inc (NASDAQ: COIN) rose 16.32% to $295.29, while Circle Internet Group (NYSE: CRCL) surged 33.82% to $199.59. CRCL stock has increased significantly since its IPO, trading at 6.5 times its initial price of $31.
- Revenue from USDC stablecoin is expected to benefit Circle significantly, as it derives most of its earnings from interest on reserves backing USDC.
- The GENIUS Act establishes regulations requiring 1:1 reserve backing for payment stablecoins, federal or state licensing, and compliance with Anti-Money Laundering laws.
- Consumer protection measures are also included in the legislation.