The stock of Circle (CRCL) soared 34% on June 18 as the U.S. Senate passed highly anticipated legislation related to U.S. dollar-backed stablecoins.
Boston-based Circle is the issuer of the USDC (USDC-USD) stablecoin, the second most widely used stablecoin in the world by circulating value after rival Tether’s USDT (USDT-USD).
Stablecoins are cryptocurrencies whose value is tied to an underlying asset such as the U.S. dollar or price of gold.
Circle went public on the New York Stock Exchange via an initial public offering (IPO) that was held on June 5.
The company’s stock is now 540% above its IPO price, marking one of the fastest climbs ever for a cryptocurrency stock.
The latest rise in Circle’s share price comes after the “GENIUS Act,” which outlines how U.S. firms can issue and manage fiat-backed stablecoins for payments, passed a vote in the U.S. Senate, putting it a step closer to becoming law.
The legislation still needs to pass the lower House of Representatives, but the Senate vote signals strong bipartisan support for bringing cryptocurrency payments under U.S. regulations.
Analysts and investors say that Circle will be a chief beneficiary if the U.S. formally embraces stablecoins as digital cash equivalents.
With its meteoric rise, Circle’s stock now has a market capitalization of $48 billion U.S., far above many other financial technology and payment companies.
CRCL stock is currently trading at $199.59 U.S. per share.
