Latest news with #GuidingandEstablishingNationalInnovationforUSStablecoins
Time of India
11 hours ago
- Business
- Time of India
Circle stock soars again as Senate passes groundbreaking Stablecoin Bill, analysts say it's still a Buy
Circle Internet Group Inc 's stock has continued its rally on Friday as investor enthusiasm skyrocketed after the Senate approved the GENIUS Act , a regulatory framework for the use of stablecoins, as per a report. Circle's Stock Keeps Climbing After Stablecoin Bill Boost The financial services company is set to end the week higher by over 58% and has surged over 500% since its initial public offering on June 5, reported CNBC. According to the report, Circle's stock increased almost 17% earlier in the day. Analysts Still See More Upside While, this has led Seaport Research Partners analyst Jeff Cantwell to issue Circle with a buy rating and a price target of $235 a share, about 18% above the stock's closing level of $199.59 a share on Wednesday, as per Market Watch. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The GENIUS bill, which stands for Guiding and Establishing National Innovation for US Stablecoins, passed the Senate on Tuesday and now will head to the House of Representatives, after this announcement, Circle's shares jumped 33% on Wednesday, reported CNBC. ALSO READ: TACO: Trump gives himself two weeks to strike Iran – reporters wonder if he'll chicken out again Live Events How GENIUS Bill Could Change Everything Head of research at crypto-focused asset manager Galaxy Digital, Alex Thorn said, 'The GENIUS Act would meaningfully upgrade dollar payment rails in ways that speed settlement times, improve transparency, promote dollar dominance, and juice U.S. debt demand,' quoted CNBC. He also pointed out that, 'The bill would add substantial consumer protections, collateral requirements, and regulatory oversight, while creating a pathway for innovators and incumbents to use public blockchains to move dollars worldwide. Getting traditional finance onto public blockchains through stablecoins could also open the door for wider adoption of bitcoin, crypto, and [decentralized finance] generally," as quoted in the report. Thorn's remark comes as stablecoins have attracted investor interest, especially after Amazon, Walmart Uber, Apple and Airbnb are reportedly exploring the possibility of using or issuing their own stablecoins, according to CNBC. FAQs Why is Circle's stock rising so fast? Mainly because the US Senate passed a bill that could bring stablecoins into the financial mainstream, and Circle is a major player in that space. What happens next for the GENIUS Act? It goes to the House of Representatives, where lawmakers will debate and vote on it, as per reports.
Business Insider
2 days ago
- Business
- Business Insider
Congress just passed a landmark stablecoin bill. 5 things to know about the booming corner of crypto.
Wednesday marked a fresh milestone for the cryptocurrency industry, with the Senate passing the GENIUS Act to create a federal regulatory framework for stablecoins. Passing in a 63-30 vote, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, will create new guidelines for the issuance and usage of stablecoins. The Act paves the way for banks, fintech firms, and big-name retailers to issue their own stablecoins or weave them into their current payment platforms. 2025 has been a breakout year for crypto. President Donald Trump's vocal support, stablecoin issuer Circle's IPO, and now, stablecoin legislation have all pushed digital assets further into the spotlight. Here are five things to know about what's going on with stablecoins. What is a stablecoin? Stablecoins are a type of crypto meant to hold a steady value to a fiat currency like the dollar. The biggest stablecoins, such as Tether and USD Coin, are "pegged" to the dollar and are backed 1:1 by reserves of cash or cash equivalents like short-term Treasurys. Unlike volatile cryptocurrencies like bitcoin, stablecoins aim for, as the name suggests, price stability. This makes them useful for everyday transactions and digital payments, as well as easily converting other crypto into fiat. What does the Genius Act do? The GENIUS Act outlines requirements for issuing stablecoins. Issuers must back each stablecoin with safe assets at a 1:1 ratio. The Act limits reserves to coins and currency, government money market funds, and other highly liquid assets. Issuers are also required to publish monthly reserve disclosures and comply with anti‑money‑laundering rules. Issuers with over $50 billion in market capitalization are required to provide annual audited financial statements. In the event that a stablecoin issuer goes bankrupt, the legislation ensures that holders of stablecoins would be given priority claims on the issuer's reserve assets. The bill faced hurdles earlier, though. Democrats were concerned that the legislation didn't do enough to prevent conflicts of interest among Congress and members of the executive branch. It took weeks of negotiation before the bill advanced out of the House. Big companies are adopting stablecoins Stablecoins aren't just for crypto enthusiasts — some of the biggest names in the S&P 500 are leaning in as well. Meta and Walmart recently announced plans to explore using stablecoins to streamline payments and reduce transaction fees for consumers. Traditional payment companies like Mastercard and Visa have been integrating stablecoins into their systems for years. Both payments companies have developed blockchain technology that enables settlement in the stablecoin USD Coin and partnered with crypto exchanges. Trump has ties to the stablecoin space The president campaigned on a crypto-friendly platform and has remained a vocal supporter of digital assets so far in his term. In addition to minting meme coins and pushing for less stringent regulation, Trump also has ties to a stablecoin issued earlier this year. World Liberty Financial, a cryptocurrency firm backed by Trump and his sons, launched the USD1 stablecoin in March of this year. The token is backed by short-term Treasurys, dollar deposits, and cash equivalents. Mark Cuban theorized this week that the new Trump smartphone launched this week could include a built-in crypto wallet for the president's $Trump memecoin and USD1. Stablecoins could cause volatility in the Treasury market Since stablecoins are largely pegged cash and cash equivalents, an increase in their use could spike demand for Treasurys as issuers build up their reserves. An uptick in demand for short term government debt could lead to a steepening of the yield curve and increased volatility in the Treasury market. Bank of America predicts that each $1 that leaves traditional banks in favor of stablecoins will lead to $0.90 of incremental demand for US Treasurys.
Time of India
3 days ago
- Business
- Time of India
GENIUS Act: When senate bypassed Trump's crypto ties; bill regulates stablecoins
Representational image In a major step towards crypto regulation, the US Senate on Tuesday approved the GENIUS Act — a bill focused on stablecoins — by a strong 68–30 vote. The bill Guiding and Establishing National Innovation for US Stablecoins, sets clear rules and consumer protections for stablecoins — a type of cryptocurrency tied to the US dollar — which have so far operated with little oversight. However, critics pointed out that the bill includes a ban on Congress members and their families from profiting off stablecoins, but leaves out the president and their family — a gap that drew attention as Trump continues to earn from crypto deals. Bipartisan support The bill required only a simple majority to pass on Tuesday, after already clearing a key procedural vote last week with a 68–30 margin. The legislation received support from 18 Democratic senators who crossed party lines to join Republicans who have a thin majority in the Senate. Two Republicans, Josh Hawley and Rand Paul, however, voted against the bill. It now heads to the House of Representatives for possible changes. The bill faced a setback in early May when a group of Senate Democrats who had earlier backed it changed their position and voted to block its progress. This led to fresh negotiations between Senate Republicans, Democrats, and the White House, resulting in the final compromise version. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending Local Enterprise Accounting Software [Click Here] Accounting ERP Click Here Undo Senator Angela Alsobrooks, a Democrat and co-sponsor, called it 'a good bipartisan effort' to bring regulation to an unregulated area. Trump's crypto stakes According to a financial disclosure released on Friday, Trump earned $57.35 million in 2024 from token sales linked to World Liberty Financial. A meme coin associated with him has reportedly generated about $320 million in fees, though those profits are shared among several investors. Last month, Trump also held a closed-door dinner at his Virginia golf club with key investors backing a meme coin branded in his name. His family also owns a major stake in World Liberty Financial — a crypto firm that recently launched its own stablecoin, called USD1. Trump's private events on 22 May, held to reward top buyers of the $Trump token, have drawn sharp criticism from ethics watchdogs, former prosecutors, and legal scholars, who accuse him of using his office for personal profit in ways not seen before, according to The Guardian. 'Self-enrichment is exactly what the founders feared most in a leader – that's why they put two separate prohibitions on self-benefit into the constitution,' said former federal prosecutor Paul Rosenzweig. Senator Elizabeth Warren, D-Mass, a leading voice on the Senate Banking Committee, strongly criticised the bill, calling it a 'super highway' for Trump's corruption, as quoted by PBS News.
Time of India
3 days ago
- Business
- Time of India
Senate approves GENIUS Bill, ushering in new era of federal stablecoin regulation
In a landmark move for the cryptocurrency industry , the US Senate on Tuesday passed the GENIUS Act , the first federal legislation to establish clear rules for stablecoins—digital tokens pegged to the US dollar. The bipartisan bill, which passed by a 68-30 margin, is seen as a pivotal step toward legitimizing and regulating a fast-growing sector that has long operated in legal uncertainty. The GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—sets out comprehensive requirements for companies issuing stablecoins. These include full reserve backing, monthly public audits, and strict compliance with anti-money laundering bill also opens the door for a range of issuers, from banks and fintech firms to major retailers, to launch their own stablecoins or integrate them into payment systems. Senator Bill Hagerty (R-Tenn.), the bill's chief sponsor, called the legislation 'a vital move toward dismantling the barriers between conventional financial markets and decentralized systems,' emphasizing that it would modernize the nation's financial infrastructure. Senate Banking Committee Chairman Tim Scott (R-S.C.) added, 'Today is a bold step forward—not just for financial innovation, but for American leadership, consumer protection, and economic opportunity'. The bill's passage is a major win for the digital asset industry, which invested an estimated $250 million in the 2024 election cycle to back what is now considered the most pro-crypto Congress in US history. Treasury Secretary Scott Bessent told lawmakers that the US stablecoin market could expand nearly eightfold to surpass $2 trillion in the coming years. However, the legislation has not been without controversy. Progressive Democrats, led by Senator Elizabeth Warren (D-Mass.), criticized the bill for lacking anti-corruption provisions and warned it could benefit President Trump and his family, who have significant crypto holdings. Despite these concerns, the Senate's bipartisan support signals a rare moment of consensus on digital asset policy. Live Events The GENIUS Act now heads to the Republican-led House, where it faces further negotiation and reconciliation with a similar House bill. If enacted, the law would require all stablecoins to be backed by liquid assets such as US dollars or short-term Treasuries, and mandate monthly reserve disclosures to the public. The measure prohibits yield-bearing consumer stablecoins and centralizes regulatory authority with the Treasury, marking a new era of federal oversight for the crypto sector. If signed into law, the GENIUS Act is expected to boost confidence in digital dollars, accelerate payment innovation, and cement the US as a leader in global financial technology.
Indian Express
23-05-2025
- Business
- Indian Express
Why bitcoin has touched all time high of $110k following a key crypto bill in US
Bitcoin has reached a new all-time high as it breached the $110,000 cap for the first time, following the advancement of a key crypto bill in the United States Senate, which has received bipartisan support, and is expected to aid those running crypto businesses. The bill, called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, has advanced in the US Senate, after some Democrat members who had initially opposed it, joined their Republican colleagues in supporting the bill, which regulated primarily stablecoin. Bitcoin has fallen last month briefly over geopolitical uncertainties following Trump's tariff-induced assault on many countries, triggering fears of a global economic turmoil. However, with some of those concerns reducing, after events like the US signing a trade deal with China, the digital currency has been gaining momentum. The GENIUS Act played a further role in its upward surge. While the bill has received support from some Democrat members because of which it moves forward in the US Senate, there are growing concerns that US President Donald Trump — once a crypto sceptic — and some of his supporters from the crypto and tech industry could personally benefit from it. Trump and his wife Melania have issued their own meme coins and have an active interest in the crypto market going up. At its core, the GENIUS Act focuses on regulating stablecoins, a type of cryptocurrency that is pegged to more predictable assets like the US dollar. Among others, it also allows big tech companies to issue stablecoins, in what is being seen as a big win for many of Trump's supporters from the industry, who threw their weight behind him in the run-up to the Presidential bid and have continued their support to him since his reelection. The bill says that issuers must comply with anti-money laundering (AML) and anti-terrorism regulations, as well as privacy requirements under existing banking laws. It requires that crypto issuers must fully back stablecoins with fiat currency or high-quality liquid assets at a 1:1 ratio. They would also have to maintain reserves separate from operational funds and disclose these reserves publicly, with regular third-party audits. Mark R Wright, Democrat Senator from the state of Virginia, who has supported the bill said that while many lawmakers have concerns about the Trump family's use of crypto technologies to 'evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans'. 'But,' he said in justification of his support to the bill, 'we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay. If American lawmakers don't shape it, others will – and not in ways that serve our interests or democratic values. Innovation in this space is happening, with or without us. We have a responsibility to ensure it happens safely, transparently, and in a way that advances U.S. economic and national security interests. The GENIUS Act will help get us started'. Even though the GENIUS Act received bipartisan support in the US Senate, some Democrat members came down heavily against it. As per a fact sheet released by Senator Elizabeth Warren, Ranking Member of the US Senate Committee on Banking, Housing and Urban Affairs, said, 'A strong bill would ensure that consumers enjoy the same consumer protections when using stablecoins as they do when using other payment systems, close loopholes that enable the illicit use of stablecoins by cartels, terrorists, and criminals, and reduce the risk that stablecoins take down our financial system. The GENIUS Act does not meet those minimum standards'. Warren said that while industry estimates suggest that passing the GENIUS Act could help the stablecoin market grow 10-fold over the next three years to a $2 trillion market, Scaling up the stablecoin market without adequate safeguards risks increasing the 'illicit use of stablecoins, which already account for over 60% of unlawful crypto transactions'. There are also concerns around potential conflict of interest for US President Donald and his growing cryptocurrency firm, could inappropriately benefit from crypto. 'This bill provides even more opportunities to reward buyers of Trump's coins with favors like tariff exemptions, pardons and government appointments,' Warren said in a speech ahead of the vote. Another concern in the legislation is that it allows big tech companies to issue stablecoins. Companies like Meta had previously tried to make an unsuccessful foray into the crypto industry. As per the New York Times, some changes have been made to the bill to assuage concerns around the involvement of tech companies, requiring that they seek approval from a regulatory committee before issuing their own stablecoins. While that appeared to assuage concerns of some Democrat members, not everyone was on board. 'Despite new language on this issue, the final bill fails to prohibit Big Tech companies from issuing stablecoins. By tearing down the 200-year separation between banking and commerce, this bill undermines competition, threatens financial stability, and erodes financial privacy. While the bill purports to place restrictions on some Big Tech companies' ability to issue stablecoins, those restrictions are riddled with straightforward and easily identifiable loopholes,' Warren said in her fact sheet. Soumyarendra Barik is Special Correspondent with The Indian Express and reports on the intersection of technology, policy and society. With over five years of newsroom experience, he has reported on issues of gig workers' rights, privacy, India's prevalent digital divide and a range of other policy interventions that impact big tech companies. He once also tailed a food delivery worker for over 12 hours to quantify the amount of money they make, and the pain they go through while doing so. In his free time, he likes to nerd about watches, Formula 1 and football. ... Read More
