US crypto stocks soar as Senate clears path for stablecoin regulation
NEW YORK: Top crypto stocks on Wall Street surged on Wednesday after the US Senate approved a milestone stablecoin bill, fuelling hopes for broader adoption of what was once a niche corner of the crypto sector.
The bill was passed with bipartisan support, marking a turning point in the debate over crypto oversight, and a breakthrough for a sector long stuck in regulatory limbo.
The tokens have gained traction for offering crypto's convenience without its volatility. Pegged to currencies like the US dollar, they aim to hold a stable value backed by reserves.
Stablecoin issuer Circle's shares were last up 20 per cent. Crypto exchange Coinbase rose 14 per cent, while commission-free brokerage Robinhood, which offers crypto trading, gained 3.40 per cent.
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 by 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.
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 US$173.60, versus its IPO price of US$31.
The company's flagship USDC stablecoin has a market value of around US$61.40 billion, according to data from CoinGecko.
The stablecoin legislation is one of two major crypto bills that industry supporters hope to have signed into law this year, analysts at Barclays said.
GAINING MOMENTUM
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.
"History is being made," Circle CEO Jeremy Allaire said in a post on social media platform X, adding that he expects the legislation will "drive US economic and national competitiveness for decades to come."
Stablecoins account for roughly US$256 billion of the crypto sector's total US$3.30 trillion market value, according to CoinMarketCap data.
"While stablecoin demand is already impressive, the new bill advancing through Congress can accelerate that demand," said Andrew Rocco, stock strategist at Zacks Investment Research.
"The bill would finally put a regulatory framework around issuing and operating stablecoins, lending credibility to the industry."
If signed into law, stablecoins will have to be backed by liquid assets — such as US 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
34 minutes ago
- New Straits Times
Bursa Malaysia dips midday amid profit-taking, US-Iran tensions
KUALA LUMPUR: Bursa Malaysia was almost flat at midday, with buying support in selected heavyweights offset by profit-taking in consumer products and services counters. At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.58 per cent or 8.77 points lower at 1,503.18, compared with Wednesday's close of 1,511.95. The benchmark index opened 0.99 of a point higher at 1,512.94 and traded between 1,501.68 and 1,512.94 throughout the morning session. The broader market was negative, with 608 losers outpacing 219 gainers, while 392 counters were unchanged. A total of 1,193 counters were untraded and 13 suspended. Turnover stood at 1.8 billion shares valued at RM765 million. Maybank Investment Bank Bhd said the FBM KLCI continued to contract today as US President Donald Trump kept the world guessing about potential US military action against Iran. "Broad market sentiment remains weak, although the transportation and logistics sector index emerged as a bright spot. "Westports Holdings Bhd attempted to trade in positive territory for a fourth consecutive day following tariff hike news from earlier this week," the firm said. Maybank IB added that local energy stocks pulled back as Brent crude oil futures hovered around the US$76.4 level. Given the current trading environment, it said investors should monitor downside risks and set strict take-profit and stop-loss levels.
Free Malaysia Today
an hour ago
- Free Malaysia Today
US Fed set to hold rates steady as it guards against inflation
Federal Reserve chair Jerome Powell has defended the central bank's independence over rates in his meeting with US President Donald Trump. (EPA Images pic) WASHINGTON : The US central bank is expected to hold interest rates steady today after its key policy meeting, as officials gauge the impact of tariffs on inflation – and despite President Donald Trump's calls for rate cuts. The Federal Reserve (Fed) has kept the benchmark lending rate unchanged this year at a range between 4.25% and 4.50%, and analysts expect policymakers will remain on the sidelines until price increases cool sustainably. While Trump has imposed a 10% tariff on most US trading partners and steeper levies on imports of steel, aluminium and autos in recent months, these have not triggered a price surge so far. This is partly because Trump has backed off or postponed some of his most punishing salvos, while businesses in turn have relied on existing inventory to avoid hiking consumer costs immediately. In May, the consumer price index edged up to 2.4% on-year from 2.3% in April, underscoring the limited effect of levies for now. However, economists expect it will take several months for tariffs to flow into consumer prices, and the Fed is proceeding cautiously with interest rate adjustments. 'The Fed would no doubt be cutting again by now if not for the uncertainty regarding tariffs and a recent escalation of tensions in the Middle East,' said KPMG senior economist Benjamin Shoesmith. The prospect of higher inflation will probably keep the central bank in 'wait-and-see mode for much of this year,' he added in a note. 'Officials will want to see 'if those factors trigger more than a transitory increase in prices,' he said. Beyond inflation data, policymakers are also trying to keep expectations 'anchored,' a state in which consumers expect price increases to remain low and steady. If there are widespread expectations of price hikes, inflation could rise as businesses increase customer costs and workers seek higher wages. Today, the Fed is also due to release its latest economic projections on growth, unemployment and inflation. Analysts will monitor if the Fed still expects to make two more rate cuts this year as well. 'Saber-rattling' For his part, Trump has repeatedly urged the independent central bank to slash rates, calling Fed chair Jerome Powell 'too late' in doing so and 'a fool' for holding off further cuts at the bank's May meeting. Trump has pointed to benign US inflation in arguing for interest rate cuts. More recently, he also cast such a move as a way for the country to 'pay much less interest on debt coming due,' overlooking the fact that lower interest rates usually raise consumer prices. Powell however has maintained that the Fed's rate-setting committee would make its decisions based solely on objective and non-political analysis, the Fed previously said. The Fed chair has also defended US central bank independence over rates in his recent meeting with Trump. Despite Trump's pressure, Allianz Trade North America senior economist Dan North expects Powell will not be too shaken by 'saber-rattling'. 'Consumers are still spending, labour markets still creating jobs, although it is in fact slowing a little bit,' North told AFP. 'Certainly, the health of the economy doesn't beg for the Fed to cut rates, so we think they're on hold till the end of the year,' he added.
Free Malaysia Today
an hour ago
- Free Malaysia Today
Wall Street futures steady ahead of Fed's interest rate verdict
Nasdaq 100 E-minis were up 75.5 points, or 0.35%. (AP pic) NEW YORK : US stock index futures edged higher today ahead of the Federal Reserve's (Fed) monetary policy decision, while the Israel-Iran conflict entered its sixth day, with new missile strikes launched from both sides. A Fed monetary policy decision is due at 2pm where policymakers are widely expected to leave interest rates unchanged at the 4.25%-4.5% range. Investors will focus on Fed chair Jerome Powell's comments to gauge how he plans to combat the risk of rising prices, which remain a dominant concern for the central bank. The central bank is expected to balance the risk of slowing growth and higher inflation. 'A lot has happened since their last meeting in early May … given that uncertainty and the potential for fresh inflationary spikes, they're widely expected to keep rates on hold again,' Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note. Money market moves show traders are pricing in about 46 basis points of rate cuts by the end of 2025, with a 56% chance of a 25-bps rate cut in September, according to CME Group's FedWatch tool. With conflict escalating in the oil-rich Middle East, markets have been on edge over the possibility of a more direct US military involvement in the Israel-Iran aerial war. A source familiar with internal discussions said US President Donald Trump and his team were considering a number of options, which included joining Israel in strikes against Iranian nuclear sites. At 5.37am, Dow E-minis were up 89 points, or 0.21%, S&P 500 E-minis were up 16.5 points, or 0.28%. Nasdaq 100 E-minis were up 75.5 points, or 0.35%. Initial jobless claims data is scheduled at 8.30am. Among premarket movers, shares of Tesla rose nearly 1%. Shares of stablecoin issuer Circle Internet rose 3.1% after the US Senate passed a bill to create a regulatory framework for dollar-pegged cryptocurrency tokens known as stablecoins.
