Circle, Coinbase Surge as Senate Passes Landmark Stablecoin Bill

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Shares of Circle and Coinbase soared on Wednesday after the U.S. Senate passed a landmark bipartisan bill to regulate stablecoins — a milestone that could legitimize and accelerate the growth of this key part of the cryptocurrency industry.

The legislation, known as the GENIUS Act, marks a rare moment of bipartisan agreement on crypto oversight and opens the door for broader adoption of dollar-pegged digital tokens, which aim to combine the convenience of crypto with the stability of fiat currencies.

Circle (CRCL.N) — the issuer of the USDC stablecoin — saw its stock climb 33.8%, closing at $199.59, more than six times its $31 IPO price earlier this month. Coinbase (COIN.O), which co-founded USDC with Circle, rose 16%, while crypto-friendly Robinhood gained 4.5%.

“History is being made,” said Circle CEO Jeremy Allaire on X. He predicted the legislation would enhance U.S. economic competitiveness for “decades to come.”

The bill must still be passed by the Republican-controlled House of Representatives before heading to President Donald Trump, who is expected to sign it by the end of summer.

If enacted, the bill would require stablecoins to be fully backed by liquid assets such as U.S. dollars or short-term Treasuries, with monthly public reserve disclosures — providing a regulatory framework that backers say will boost investor confidence and encourage institutional adoption.

Circle’s USDC is the second-largest stablecoin, with a market cap of $61.4 billion, and has helped power a 51% rise in Coinbase’s stablecoin revenue in Q1 alone. Analysts now see stablecoins evolving beyond crypto into a universal internet payment rail, comparable to digital cash.

“This bill could transform stablecoins from niche financial tools into core internet infrastructure,” wrote analysts at Bernstein.

Other corporates are reportedly exploring launching their own stablecoins, encouraged by the clarity the GENIUS Act promises. Meanwhile, analysts at KBW noted that the bill could also act as a tailwind for cryptocurrencies like bitcoin, which often trade alongside stablecoin demand.

Industry observers say the GENIUS Act is one of two key crypto bills that could become law in 2025 — a turning point for a sector long hindered by regulatory uncertainty.

Stablecoins Hit Record $251.7 Billion Market Cap as U.S. Senate Advances Regulatory Bill

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The market capitalization of stablecoins surged to a record $251.7 billion on Wednesday, marking a 22% increase so far in 2025, according to data from CoinDesk. The milestone coincides with a significant regulatory breakthrough as the U.S. Senate passed a bill aimed at bringing clarity and legitimacy to the fast-growing digital asset class.

Stablecoins — cryptocurrencies pegged to traditional currencies like the U.S. dollar — have become vital tools for crypto traders, allowing them to quickly move between assets without exposure to market volatility. But their growing role in digital finance has also sparked concerns about financial stability, prompting U.S. lawmakers to step in.

The new Senate-approved bill would, if signed into law, require stablecoins to be:

  • Fully backed by liquid assets, such as U.S. dollars or short-term Treasury bills, and

  • Subject to monthly public disclosure of reserve composition by issuers.

The proposed framework is being hailed by many in the crypto industry as a major legitimizing step. Proponents argue that with clear rules and reserve transparency, stablecoins could be used for instant global payments and could serve as a bridge between traditional finance and decentralized systems.

However, critics remain cautious. Some analysts warn that a growing reliance on stablecoins could tighten the link between the crypto market and traditional financial infrastructure, increasing systemic risk if not carefully managed.

Still, the surge in stablecoin market cap reflects renewed investor confidence. The bill’s advancement sends a clear message: regulation is coming, and the market is preparing to embrace it.

Poor Grid Planning Threatens Europe’s Data Centre Hubs, Ember Report Warns

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Europe’s top data centre locations, including Frankfurt, London, Amsterdam, Paris, and Dublin, risk losing their dominance unless governments improve long-term grid planning, according to a new report released Thursday by energy think-tank Ember.

The surge in demand for data centres, driven by the rise of artificial intelligence (AI) and its energy-intensive computing needs, is shifting investment priorities. Developers are increasingly choosing locations with faster and easier access to electricity, rather than remaining loyal to traditional hubs plagued by long grid connection delays.

The report warns that by 2035, up to 50% of Europe’s data centre capacity could relocate outside the current main hubs. This could divert billions of euros in economic activity to emerging markets, with significant implications for GDP and job creation. For example, data centres in Germany generated €10.4 billion in GDP in 2024 — a figure expected to more than double by 2029. Losing momentum in such a high-growth sector could harm economic prospects in these countries.

While France is likely to retain investment due to a relatively unconstrained grid, others could suffer delays of up to 13 years in connecting new data centres. The average wait time in the legacy hubs is 7–10 years, compared to only 3 years in Italy and even less in some emerging regions.

“Grids are ultimately deciding where investments go,” said Elisabeth Cremona, Senior Energy Analyst at Ember. “If Europe wants to maintain its competitiveness and achieve economic growth, it must prioritise grid development.”

She emphasized that the issue extends beyond data centres to all sectors undergoing electrification. Without updated grid infrastructure, industries could struggle to scale or relocate entirely to regions with faster energy access.

Electricity demand from data centres is projected to triple in Sweden, Norway, and Denmark by 2030, and increase three- to fivefold in Austria, Greece, Finland, Hungary, Italy, Portugal, and Slovakia by 2035.

The findings highlight an urgent need for European policymakers to treat grid planning as a strategic investment tool, not just a utility service, in order to retain tech-sector leadership and support industrial transformation.