The cryptocurrency landscape experienced another remarkable week, marked by significant developments. Recently, the Senate approved a piece of legislation aimed at creating a federal framework for stablecoins, which are cryptocurrencies pegged to the US dollar. This bill, referred to as the GENIUS Act, still requires consent from the House of Representatives and the President, but its rapid advancement has been celebrated within the crypto sector as a crucial milestone that could facilitate broader adoption of stablecoins in conventional financial systems.
In the wake of this legislative progress, shares of Circle (CRCL), the issuer of USDC, the second-largest stablecoin globally, surged, closing Friday with an impressive 80% increase for the week. The stock has seen a staggering rise, approximately eightfold since its initial public offering (IPO) on June 5. Coinbase Global (COIN), a leading US cryptocurrency exchange and a key partner of Circle, also benefited from this momentum, witnessing a 27% increase over the same period. Coinbase holds a minority stake in Circle and shares in the revenue generated by Circle’s USDC.
Meanwhile, the most astonishing performance came from SRM Entertainment (SRM), a lesser-known theme park and merchandise company based in Winter Park, Florida. Following the announcement on June 16 that it would collaborate with the crypto platform Tron to acquire Tron tokens, rebrand itself as Tron Inc., and enlist Tron founder Justin Sun as an adviser, the company’s stock skyrocketed by approximately 661%.
President Trump also entered the fray. Just a day after the Senate passed the GENIUS Act with a 68-30 vote, he praised the legislation in a social media post, declaring it “an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets.” The President’s enthusiasm is understandable, as the crypto sector has made significant strides in Washington this year, coinciding with the Trump family’s increasing involvement in the industry. Companies associated with Trump have explored various avenues, including launching memecoins, dollar-pegged stablecoins, and bitcoin mining ventures.
Recently, Trump Media and Technology Group (DJT) announced a $2.5 billion fundraising initiative to acquire cryptocurrencies. A week ago, the SEC approved its plan to issue equity and debt to facilitate the purchase and holding of bitcoin. An updated financial disclosure indicated that Trump earned $57 million last year from his holdings in tokens linked to World Liberty Financial, a decentralized finance project where he and his sons are listed as advisers. Under the leadership of CEO Zach Witkoff, son of the President’s Middle East envoy, this venture launched a stablecoin earlier this year, which was selected as the payment method for the UAE’s sovereign wealth fund MGX to raise $2 billion for crypto exchange Binance.
In a notable twist, Binance founder Changpeng Zhao has reportedly sought a pardon, as a civil enforcement action initiated by the SEC against Binance entities was dismissed earlier this month. Concurrently, Justin Sun, the founder of Tron, has invested significantly in two crypto projects linked to Trump. As the largest holder of Trump’s memecoin, Sun participated in a private dinner at Trump’s Virginia golf course last month and previously invested $75 million in World Liberty tokens.
The crypto community views the recent successes in Washington, particularly the passage of the GENIUS Act, as a pivotal moment indicating that digital assets are now integral to the financial ecosystem. Yat Siu, executive chairman of Animoca Brands, a Hong Kong-based crypto development firm, remarked that the bill’s bipartisan backing provides stablecoin issuers—ranging from banks to tech and gaming companies—with the opportunity to innovate under a clear regulatory framework.
The Trump administration has been signaling its intention to foster growth in the stablecoin market. Treasury Secretary Scott Bessent recently informed lawmakers that this legislation could potentially propel the US stablecoin market beyond $2 trillion by 2028. The GENIUS Act mandates that companies issuing stablecoins must maintain $1 in cash or short-term US Treasury securities for every $1 in stablecoins issued, suggesting that the anticipated expansion of the stablecoin market will lead to increased demand for US debt instruments. Current estimates from analysts at Standard Chartered and Morgan Stanley indicate that the stablecoin market’s holdings of US Treasuries range between $166 billion and just under $200 billion.
However, the bill has faced criticism. Certain Democrats, including Senator Elizabeth Warren, have voiced concern over the lack of amendments aimed at enhancing consumer protections, specifically regarding potential conflicts of interest for the President and his family with businesses benefiting from the legislation. “The GENIUS Act has a major loophole that allows Big Tech companies and major retailers to issue their own private currencies structured as stablecoins,” Warren stated before the bill’s passage. “This bill shouldn’t pass without amendments preventing these risks,” she added.
In light of these developments, the crypto sector continues to evolve with increasing regulatory attention and market dynamics, setting the stage for significant changes in how digital assets are perceived and utilized within the broader financial landscape.
