The crypto landscape experienced a significant week recently, marked by notable developments. The Senate has approved a bill aimed at establishing a federal framework for stablecoins, which are cryptocurrencies backed by the US dollar. This legislation, referred to as the GENIUS Act, is still pending approval from the House and requires the endorsement of President Trump. Nonetheless, its rapid advancement has been celebrated by the crypto sector as a pivotal move towards integrating stablecoins into mainstream financial services.
Circle (CRCL), the company behind the second-largest stablecoin, USDC, saw its shares soar, finishing the week with an impressive 80% increase. Since its initial public offering (IPO) on June 5, the stock price has risen nearly eightfold. In tandem with Circle’s success, Coinbase Global (COIN), a major US cryptocurrency exchange and Circle’s key partner, benefited from the positive momentum, climbing 27% throughout the week. Coinbase holds a minority interest in Circle and shares in the revenue generated from USDC.
In a remarkable twist, SRM Entertainment (SRM), a lesser-known company based in Winter Park, Florida, experienced an astonishing surge of approximately 661% following its announcement on June 16 about a partnership with the crypto platform Tron. This collaboration includes plans to acquire Tron tokens, rebranding as Tron Inc., and appointing Tron founder Justin Sun as an adviser.
President Trump has also joined the excitement. Just a day after the Senate passed the GENIUS Act with a vote of 68-30, he took to social media to describe the bill as “an incredible Bill that is going to make America the UNDISPUTED Leader in Digital Assets.” The president’s enthusiastic support is no surprise, considering the growing successes of the crypto industry in Washington this year. Trump and his family have increased their involvement in the sector, engaging in various endeavors from launching memecoins to investing in dollar-backed stablecoins and bitcoin mining.
Recently, Trump Media and Technology Group (DJT) announced a $2.5 billion fundraising initiative to acquire cryptocurrencies, with the SEC having recently approved its plans to issue equity and debt for the purpose of purchasing and holding bitcoin. In a financial disclosure filed just a week ago, Trump reported earning $57 million last year from his stake in tokens associated with World Liberty Financial, a decentralized finance initiative where he and his sons serve as advisers. This venture, led by CEO Zach Witkoff, who is the son of the president’s envoy to the Middle East, launched a stablecoin earlier this year that was selected as the payment medium for a $2 billion fundraising effort by the UAE sovereign wealth fund MGX for cryptocurrency exchange Binance. Notably, Binance’s founder, Changpeng Zhao, has been seeking a pardon, according to reports.
Moreover, Justin Sun, the founder of Tron, is a significant supporter of two crypto projects linked to the president. He holds the largest amount of Trump’s memecoin and attended a private dinner hosted at Trump’s golf course in Virginia last month. Prior to that, he invested $75 million into World Liberty tokens.
The crypto community has greeted the developments in Washington, including President Trump’s support and the passage of the GENIUS Act, as a transformative moment that confirms the integration of digital assets into the financial landscape. Yat Siu, executive chairman of Animoca Brands, a Hong Kong-based crypto developer and venture firm, stated, “The bill’s bipartisan support gives stablecoin issuers, including banks, tech, and gaming companies, the green light to innovate within a clear regulatory framework.”
The Trump administration has been signaling its intent to foster growth in the stablecoin market. Last week, Treasury Secretary Scott Bessent informed lawmakers that this legislation could propel the US stablecoin market to exceed $2 trillion by the end of 2028. The GENIUS Act mandates that companies issuing stablecoins must maintain $1 in cash or short-term US Treasuries for each dollar of stablecoins they distribute, indicating that the anticipated growth in the stablecoin sector could lead to heightened demand for US debt instruments. Recent estimates from analysts at Standard Chartered and Morgan Stanley suggest that current US Treasury holdings in the stablecoin market range from $166 billion to nearly $200 billion.
However, the bill has faced some backlash. Certain Democratic senators, including Elizabeth Warren, have voiced their concerns regarding the absence of amendments that would enhance consumer protections and specifically prohibit the president and his family from having financial ties to businesses that may benefit from the legislation. Warren remarked, “The GENIUS Act has a major loophole allowing Big Tech companies and major retailers to issue their own private currencies structured as stablecoins,” expressing her belief that the bill should not pass without addressing these risks.
As the discussion around stablecoins continues, the involvement of prominent figures like Trump and the implications of the GENIUS Act will undoubtedly shape the future of the cryptocurrency landscape.
