Circle Rallies 34% on GENIUS Act Tailwinds — What’s Next for Stablecoin Investors?

TradingKey - In a major milestone for crypto regulation, the U.S. Senate on Tuesday passed the GENIUS Act — a landmark bill that lays the groundwork for federal oversight of U.S. dollar-pegged stablecoins. The bill also paves the way for private companies to issue digital dollars under a clear legal framework backed by the federal government.

At a Senate hearing last week, Treasury Secretary Scott Bessent said the U.S. stablecoin market could balloon nearly eightfold in the next few years — potentially topping $2 trillion.

It’s no coincidence this comes right as Circle — the issuer of USDC — went public on June 5. The IPO soared more than 500% on day one, reflecting surging investor confidence in the regulated future of stablecoins and the broader crypto ecosystem.

Why Investors Are Excited

For investors, this goes well beyond just digital dollars. The real opportunity lies in the infrastructure being built behind the scenes — faster payments, lower costs, and new financial rails powered by blockchain.

Take TRON, for example. Known for hosting large volumes of USDT transactions, it's now processing over 8.3 million transactions per day and supporting over 306 million accounts globally. The network's extremely low fees make it a favorite for sending stablecoins.

Solana is another one to watch. Its high-speed, low-cost blockchain has seen stablecoin supply more than double this year, jumping from 5.2billiontonearly5.2billiontonearly11.7 billion. That growth shows how much developers and users are gravitating toward cheaper, faster chains.

In cross-border use cases, Stellar’s partnerships with MoneyGram, Circle, and other global players are making XLM a serious contender. Thanks to near-instant settlement and almost zero fees, many believe Stellar could break the $1 mark in 2025.

DAI, a decentralized stablecoin run on Ethereum, also stands out. Unlike centralized coins like USDT or USDC, DAI is backed by overcollateralized crypto rather than fiat and maintains its 1:1 peg with the U.S. dollar. It’s now the fifth-largest stablecoin, with over $4.1 billion in circulation.

Regulatory Tailwinds + Ecosystem Growth = Long-Term Opportunity

Circle currently handles about 60% of all stablecoin trading volume. Its “capital-light” model, strategic partners like Visa and BlackRock, and early alignment with the GENIUS Act give it a strong edge as regulation moves into place. Expect its earnings and market share to grow in tandem.

Crypto-related equities are also getting a boost. Coinbase (COIN) is seeing strong tailwinds from institutional adoption and elevated trading volumes — particularly in stablecoins. Its position as the leading on-ramp in the U.S. makes it a likely long-term winner.

MicroStrategy (MSTR), while more exposed to Bitcoin price swings, remains a unique vehicle for institutional-sized exposure to BTC. Its ongoing accumulation strategy and creative use of yield-generating products provide added upside.

Banks Are Joining the Stablecoin Game

According to a May 22 report in the Wall Street Journal, banking heavyweights — JPMorgan, Bank of America, Citi, and Wells Fargo — are now exploring a joint stablecoin project. The GENIUS Act appears to be the key driver pushing Wall Street into the stablecoin conversation.

JPMorgan is preparing to launch a deposit token called JPMD on Coinbase. Each JPMD token would represent a digital equivalent of a commercial bank deposit, issued on Ethereum. Unlike traditional stablecoins, deposit tokens allow faster settlement while staying inside the regulated banking system.

Bank of America’s CEO recently confirmed the bank is in active discussions about issuing a stablecoin and exploring other blockchain-based financial applications.

Globally, Société Générale issued its euro-backed stablecoin (EURCV) last year and is now reportedly considering a USD version — part of an increasing international trend toward stablecoin innovation.

Retail Giants Want In Too

Retailers are starting to feel the pressure — and see the potential. Walmart and Amazon are exploring branded stablecoins for their U.S. operations. Expedia, airlines, and other large consumer-facing businesses are also in the mix.

Why? Because credit card fees are eating into margins — sometimes to the tune of billions annually. And slow payment settlements can delay access to revenue. Stablecoins could offer an elegant solution: fast, cheap, transparent transactions.

Some merchants are even lobbying lawmakers directly. The Merchant Payments Coalition has reportedly been in discussions with Congress, pushing not only for passage of the GENIUS Act but also for more competition against Visa and Mastercard’s fee-heavy dominance.

Walmart has gone so far as to propose its own amendment to the bill, aiming to shake up the credit card industry. The company has long been trying to enter the financial services space, and stablecoins may finally give it the bridge it needs.

Amazon’s plans are earlier in development, but insiders say the company is weighing options for using either its own stablecoin or partnering with others via a merchant-led consortium.

Asia Eyes Stablecoins for Cross-Border Growth

Chinese tech giants are also making moves. Ant International (part of Alibaba) plans to apply for a stablecoin issuer license in Hong Kong under a new law going live on August 1, 2025. The company already processes over 300 billion annually on its block chain. If even half of that shifts to stablecoins, that’s 300 billion annually on its block chain.

JD.com’s blockchain unit, JD Chain Technology, is also in Hong Kong’s regulatory sandbox for stablecoin projects, while Standard Chartered is working on a Hong Kong dollar stablecoin backed by local tech partners.