Latest news with #CircleInternet
Reuters
10 hours ago
- Business
- Reuters
Breakingviews - Uncle Sam's stablecoin passion has shaky rationale
LONDON, June 19 (Reuters Breakingviews) - Uncle Sam is going all-in on stablecoins. President Donald Trump backed, opens new tab the privately issued cryptocurrencies whose value is pegged to the U.S. dollar within days of his inauguration in January. Now Congress is poised to legislate, after the Senate this week approved the Guiding and Establishing National Innovation for U.S. Stablecoins – or GENIUS - Act. The newly supportive regulatory environment has drawn a flood of interest from potential issuers, from major banks, opens new tab to retailers, opens new tab such as Walmart (WMT.N), opens new tab and (AMZN.O), opens new tab, according to media reports. Meanwhile stablecoin specialist Circle Internet, opens new tab(CRCL.N), opens new tab, which listed on the New York Stock Exchange this month, has a digital dollar surrogate, USDC, which already has coins worth over $60 billion in circulation, opens new tab. Commercial interest is nothing new. Tech-savvy American corporates have long recognised stablecoins as the one species of digital money with a compelling mainstream use. The first generation of cryptocurrencies such as bitcoin offered not just a way of digitally storing and transferring value, but the ability to denominate it in their own standard units. That model caught on with speculative traders but never made much headway in the world of digital payments. Stablecoins, by contrast, combine the novelty of global, real-time availability and programmability with the familiarity of national currency units. That makes them uninteresting as speculative bets – but well suited as methods for payment. A simple comparison shows how the two models serve different purposes. Bitcoin – the original and by far the largest own-standard cryptocurrency – has tokens in circulation worth $2.1 trillion. That's nearly 10 times the value of the two biggest stablecoins, USDT and USDC, combined. Yet when it comes to transactions, the leaderboard is reversed. Less than 3% of those bitcoins change hands in a 24-hour period, compared to nearly 40% of the two stablecoins. The payments business is a big target for disruption. Visa (V.N), opens new tab and Mastercard (MA.N), opens new tab – the two largest processors of fiat currency payments – reported combined revenue of $74 billion last year and enjoy net profit margins of around 50%. That's quite a market at which to take aim. Moreover, stablecoin issuers collect interest on the collateral backing their digital coins as well as harvesting transaction processing fees. That's how Circle made a cool $1.7 billion in revenue last year. It's not hard to see why potential stablecoin issuers have been lining up for years. Nevertheless early projects flopped, notably Facebook owner Meta Platforms' (META.O), opens new tab ill-fated 2017 Libra stablecoin, opens new tab. That's because regulators and central bankers have not been nearly so keen. Three potential gremlins have been uppermost in their minds. The first is what would happen if stablecoins are not backed by sufficient high-quality, liquid collateral to make them redeemable at par on demand. A plague of pseudo-U.S. dollars would then circulate at varying discounts to the real greenback. That would undermine the so-called 'singleness of money, opens new tab' and destroy the co-ordinating role of the U.S. dollar as a unit of account. The regulators' second bugbear is the black economy. They fret that because stablecoins are effectively 'bearer securities', like physical banknotes, they are subject to know-your-customer and anti-money laundering rules only when their users seek to convert them into traditional bank deposits. In the meantime, they can be used to make payments anonymously just like physical cash. Finally, there is the risk that stablecoins erode the effectiveness of monetary policy. Physical greenbacks may be hard to track, but they are still issued by the U.S. Federal Reserve. A stablecoin issued by Amazon or Walmart might settle a macroeconomically significant volume of transactions between its customers and suppliers without ever formally touching the dollar. That could scramble the Fed's attempts to manage inflation by constraining liquidity. Yet none of these objections are new. Prudential risks are already a concern for money market funds and traditional banks. The anonymity of transactions is a feature of physical banknotes. The dilution of monetary policy is a familiar gripe of central bankers in emerging markets, where foreign currencies such as the dollar or euro often circulate alongside the national unit. What spooks regulators in the developed world is less the novelty of the risks than the frightening scale, scope, and speed which digitisation allows. That implies work-arounds can probably be found, especially if a unified clearing and settlement protocol connecting stablecoins to the traditional financial system, such as the ubyx, opens new tab concept announced this week, are adopted. Until this year, the caution of the regulators trumped the commercial interests of potential stablecoin issuers. What has helped to unblock the GENIUS Act is that the U.S. government believes it has spotted a fiscal benefit. Treasury Secretary Scott Bessent set out, opens new tab his reasoning immediately after the Senate approved the act. 'A thriving stablecoin ecosystem will drive demand from the private sector for U.S. Treasuries, which back stablecoins,' he wrote: 'This newfound demand could lower government borrowing costs and help rein in the national debt.' What's more, he argued, stablecoins could 'onramp millions of new users – across the globe – to the dollar-based digital asset economy', effectively opening up a new frontier of overseas funding for the U.S. budget deficit. Bessent cited projections that the stablecoin market could top $3.7 trillion by 2030. That's certainly not small change. It would be more than sufficient to soak up the $3 trillion that nonpartisan experts reckon, opens new tab Trump's One Big Beautiful Bill Act will add to the national debt over the next 10 years. Unfortunately, things are not so simple. The Treasury already effectively enjoys free foreign financing via overseas demand for U.S. dollar banknotes. The Fed estimates, opens new tab that over $1 trillion of them currently circulate abroad. If dollar-backed stablecoins simply replace demand for physical notes, there will be no net fiscal benefit. Another niggle is that while purchases of stablecoins may help finance the national debt, the tokens could facilitate more payments that fly under the radar of the Internal Revenue Service (IRS). In 2022, the IRS estimated, opens new tab that nearly 12% of U.S. taxes go missing due to underreporting, implying a shortfall of around $600 billion in the most recent fiscal year. A surge in stablecoin usage could easily make that worse. Given the compelling commercial case and the likelihood that regulatory risks can be managed, it is ironic that the potential fiscal dividend that has finally convinced the U.S. government to bank on stablecoins is the shakiest rationale for embracing them. Follow @felixmwmartin, opens new tab on X
Yahoo
16 hours ago
- Business
- Yahoo
Circle Internet (CRCL) Hits 5th All-Time High in June as Senate OKs Stablecoin
We recently published a list of These 10 Stocks Boast Double-Digit Gains Amid Boring Market. Circle Internet Group (NYSE:CRCL) is one of the best-performing stocks on Thursday. Circle Internet jumped by 33.82 percent on Wednesday to hit its fifth record high just this month, following the Senate's passage of Stablecoin legislation. On Tuesday, the Senate gave its green light for the GENIUS Act, which provides a federal government framework for use of the cryptocurrency whose value is tied to the US dollar. This would allow financial companies such as banks, fintech, and retailers, among others, to use stablecoins. The news followed Circle Internet Group's (NYSE:CRCL) announcement earlier this week that its USDC stablecoins are being adopted by retail giants Amazon and Walmart, as well as e-commerce operator Shopify. According to Circle Internet Group (NYSE:CRCL), Shopify began rolling out its feature that enables merchants to accept USDC stablecoins—a cryptocurrency founded by its founders Jeremy Allaire and Sean Neville—for payments and order fulfillment flows. A wide angle view of a bustling cityscape, capturing the potential of the consumer internet. Circle Internet Group (NYSE:CRCL) also said that it partnered with blockchain firm Ripple to bring USDC stablecoins to the latter's XRP Ledger blockchain as well as with digital identity company World for the addition of USDC and CCTP V2 (Cross-Chain Transfer Protocol) on World Chain. While we acknowledge the potential of CRCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Miami Herald
21 hours ago
- Business
- Miami Herald
Circle stock goes parabolic after Capitol Hill surprise
The regulatory chickens finally came home to roost yesterday, and Circle stock shot up in tandem. It's been a crazy few weeks for Circle Internet (CRCL) -marked by a monster IPO, bullish vibes from regulators, and some bold moonshot talk. Don't miss the move: Subscribe to TheStreet's free daily newsletter Yesterday's regulatory breakthrough, though, was arguably Circle's biggest win yet, potentially echoing through the crypto space for years. The development adds fresh legitimacy to Circle Internet's push to make digital dollars mainstream. Bloomberg/Getty Images For years, we've seen stablecoin issuers tiptoe through a maze of state regulations and uncertain federal guidance. Related: Circle's stock price surges after stunning CEO comment This patchwork has forced companies and customers to contend with random enforcement actions, unexpected shutdowns, and hefty compliance costs. Without clear guidelines at the federal level, even the biggest issuers hesitated to pursue partnerships with traditional banks or savvy money investors. However, yesterday's regulatory developments will likely transform stablecoins from experimental tokens into trusted components of the financial system. With uniform guidelines, banks and fintech firms can feel much more confident about integrating stablecoins like USDC into their platforms. That opens the door for billions of dollars in on-chain transactions previously stalled by uncertainty. Meanwhile, issuers like Circle Internet, boasting solid audit practices and transparent reserve models, stand to gain immensely. More Circle Internet Stock News: Circle rockets 124% at open as IPO demand goes wild Stablecoin issuer Circle files to go public - Crypto Quantum computing stock price slips after 3rd double-digit pop in June Circle Internet and its crypto peers went on a tear yesterday, after the Senate passed the GENIUS Act in a sweeping 68-30 vote. The landmark legislation offers a clear regulatory framework for stablecoins, bolstering the legitimacy of the crypto space. Related: Wall Street rallies behind Marvell Technology stock after blockbuster AI showcase It now moves to the House for potential adjustments. It will then head to President Donald Trump, who wants the bill passed before August. "This bill will cement U.S. dollar dominance, protect customers, increase demand for U.S. Treasuries, and ensure that innovation in the digital asset space is in the hands of the U.S., not our adversaries," Sen. Bill Hagerty (R-TN), the bill's sponsor, said. Some Democrats slammed the bill, calling it a fast track for Trump-era crypto corruption. Senator Elizabeth Warren, in particular, called it a "super highway" for shady dealings. In a related move boosting Circle stock, Coinbase will use USDC as collateral for U.S. futures trading-an industry first. The shift likely brings Circle's stablecoin deeper into the mainstream, just as Washington is backing crypto. For context, this Senate vote effectively pays off months of quiet grinding. It started in March, when Senate Banking went down to brass tacks on the GENIUS Act. By May, things hit a wall. Cloture (a process for ending debate to take a vote) failed, with the Democrats linking the bill to Trump's personal crypto plays. Then came the pivot. Trump, proclaiming himself the "crypto president," launched his own $TRUMP coin and put his AI and crypto czar into the spotlight. By mid-June, the bill sailed through with 68 votes, igniting a massive rally in Circle stock. Called it, by the way. Circle stock rocketed almost 34% yesterday, jumping from roughly $149 to close at $199.59. In after-hours trading, the stock continued its ascent, tacking on another 6.1% to reach $211.87, posting a new 52-week high. To put things in perspective, Circle stock has soared since its IPO back in early June, jumping 70% in the past week alone. Related: OpenAI's Altman slams Mark Zuckerberg, ignites drama The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Business
- Yahoo
Why Circle Internet Stock Skyrocketed Up 33.9% Today
The Senate passed a bill that would create a regulatory framework for stablecoins. Circle Internet, which issues the stablecoin USDC, IPO'd earlier this month. 10 stocks we like better than Circle Internet Group › Shares of Circle Internet Group (NYSE: CRCL) soared today, finishing the day up 33.9%. The spike came as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were relatively flat. The U.S. Senate passed the GENIUS Act, a landmark bill that would create a federal regulatory framework for stablecoins like Circle's USDC. While the bill still needs to clear the House of Representatives, the passage of the GENIUS Act through the Senate marks a major step toward integrating stablecoins into the American financial system. The bill allows banks, fintech firms, and retailers to legally issue and use stablecoins, while also establishing consumer protections and regulatory oversight. Sen. Kirsten Gillibrand, a co-sponsor of the bill, said it will "enable U.S. businesses and consumers to take advantage of the next generation of financial innovation" and "protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar." Stablecoins are cryptocurrencies designed to directly reflect the value of the currency that they are "pegged" to, like the dollar. Circle issues one of the largest and most popular stablecoins on the market. The company IPO'd earlier this month, and the stock has already more than doubled. There is a lot of excitement around stablecoins, especially now that the GENIUS Act has passed. Circle is in the best position to capture the lion's share of the legal stablecoin market. However, with a market cap of more than $40 billion and sales last year of $1.7 billion. I'm afraid there is too much hype around the stock for my taste. Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Circle Internet Stock Skyrocketed Up 33.9% Today was originally published by The Motley Fool Sign in to access your portfolio
CNA
2 days ago
- Business
- CNA
Circle surges as US Senate clears path for stablecoin regulation
Shares of Circle Internet jumped 16 per cent in morning trading on Wednesday after the U.S. Senate approved a milestone stablecoin bill, fueling hopes for broader adoption of what was once a niche corner of the crypto sector. A rare show of bipartisan support marks a turning point in the fractured debate over crypto oversight, and a breakthrough for a sector long stuck in regulatory limbo. Circle, the issuer of the second-largest stablecoin by market value, went public earlier this month in a blowout debut on the New York Stock Exchange. Its shares were last at $173.60, versus IPO price of $31. The company's flagship USDC stablecoin has a market value of around $61.4 billion, according to data from CoinGecko. The tokens have gained traction for offering crypto's convenience without its volatility. Pegged to currencies like the U.S. dollar, they aim to hold a stable value backed by reserves. The Republican-controlled House of Representatives must pass its version of the bill, known as the GENIUS Act, before it heads to President Donald Trump for approval. "Once passed into a law (likely the end of summer), we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet," analysts at brokerage Bernstein said. Proponents say by setting clearer rules for issuing and managing dollar-pegged tokens, the bill could bring greater legitimacy to the sector. Several high-profile corporates are also reportedly exploring launching their own stablecoins. If signed into law, stablecoins will have to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. "Stablecoin adoption could also serve as a strong tailwind for major cryptocurrencies like bitcoin," analysts at brokerage KBW said. Stablecoins account for roughly $256 billion of the crypto sector's total $3.3 trillion market value, according to CoinMarketCap data.
