Wednesday’s rally reflects investor confidence that Circle will be the chief beneficiary if the U.S. formally embraces stablecoins as digital cash equivalents.

Shares of stablecoin issuer Circle and crypto exchange Coinbase surged on Wednesday after the U.S. Senate passed a landmark stablecoin bill, boosting hopes of wider adoption for a once-niche part of the crypto sector.

The U.S. Senate passed the Donald Trump-backed stablecoin bill on Tuesday, a significant victory for the crypto industry, which donated millions of dollars to the 2024 presidential election. The so-called ‘Genius Act’ will regulate stablecoin digital assets,