Latest news with #GuidingandEstablishingNationalInnovationforU.S.Stablecoins
USA Today
2 days ago
- Business
- USA Today
Genius Act explained: What the new Senate bill means for cryptocurrency investors
On June 17, the U.S. Senate officially passed the Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, which will create a federal regulatory framework for stablecoins. The bill will now head to the House for review, with a final signature by President Donald Trump expected before the end of the summer. As might be expected, crypto market participants widely hailed the news, and stocks tied to stablecoins surged. Here's what you need to know. A genius move? The Genius Act will become the first major piece of crypto legislation passed by the Trump administration, which came into office promising a huge overhaul of the crypto sector. Previous actions, such as creation of the Strategic Bitcoin Reserve, occurred only via executive order. The Genius Act legislation is important because it helps to define the playing field for stablecoins, which have been one of the fastest-growing sectors of the crypto market. In 2020, stablecoins were valued at about $20 billion; today, they're valued at $250 billion. According to Treasury Secretary Scott Bessent, they have the potential to be worth as much as $2 trillion in just a few years. What are stablecoins? Simply stated, stablecoins are digital currencies that are pegged 1:1 to the value of another asset. In 90% of the cases, stablecoins are pegged 1:1 to the U.S. dollar. But there's no reason a stablecoin couldn't be pegged to, say, the Japanese yen. These stablecoins can be used to facilitate international trade, make digital payments, and participate in the world of decentralized finance (the blockchain version of traditional finance). The Treasury Department has even hinted that stablecoins could become a tool to reduce the nation's $37 trillion debt load and bolster the value of the dollar. Potential genius investment opportunities The good news is that there are several different ways to participate in this growing investment trend. The most obvious way, of course, is to invest in one of the top stablecoins. Right now, the two big stablecoins are Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC), and together, they account for nearly 85% of the value of the $250 billion stablecoin industry. However, unless you're planning to participate in decentralized finance via new stablecoin yield strategies, you'll be holding an asset that will always be valued at $1. That's what makes these coins stable — they're always supposed to hold their value since they're backed by cash. For that reason, they're often referred to as digital dollars. The next option is to invest in one of the top stablecoin issuers. The popular pick right now is Circle Internet Group (NYSE: CRCL), the issuer of the USDC stablecoin. On June 5, Circle went public via an initial public offering (IPO) and has been absolutely on fire since then. Circle is the only publicly traded pure-play stablecoin issuer, which helps to explain why investors just can't seem to get enough of it. However, other publicly traded companies have either launched stablecoins of their own or are planning to do so in the future. For example, PayPal (NASDAQ: PYPL) launched a stablecoin back in August 2023. And just as news was breaking about the passage of the Genius Act, the Wall Street Journal reported that both Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT) are exploring stablecoins of their own. What could possibly go wrong? New stablecoin legislation is a big step forward for the crypto market. As Trump noted in a social media post, the legislation will make the U.S. the "UNDISPUTED Leader" when it comes to digital assets. The stablecoin industry looks ready to explode in value over the next few years, and the U.S. should be a key player. But here's the thing: Stablecoins — which are supposed to be stable — have the potential to be extraordinarily volatile. That's what happened during the previous crypto bull market rally, when a popular stablecoin (TerraUSD) suddenly lost its peg to the dollar, costing investors billions of dollars and causing a cascading series of events that eventually contributed to the so-called crypto winter of 2022. Moreover, potential conflicts of interest could cause investors to lose faith in stablecoins. It's important to note that World Liberty Financial, a crypto venture affiliated with the Trump family, recently launched a stablecoin of its own. That has some politicians — including some senators who voted against the Genius Act — asking very serious questions about stablecoins. Still, it's hard not to be excited about stablecoins. They seem poised to revolutionize the world of finance, and just about everyone — from Wall Street bankers to Washington politicians — seem to be embracing them. It doesn't take a genius to understand that investing in this new trend early could be one way to lock in impressive long-term returns. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dominic Basulto has positions in Amazon, Circle Internet Group and USDC. The Motley Fool has positions in and recommends Amazon, PayPal and Walmart. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Circle Internet Group right now? Offer from the Motley Fool: Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $689,813!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $906,556!* Now, it's worth notingStock Advisor's total average return is809% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks »
CNBC
2 days ago
- Business
- CNBC
Circle resumes its post-IPO rally after pullback, stablecoin issuer boosts Coinbase
Stablecoin issuer Circle resumed its rally on Thursday after a brief pullback this week. Shares were last higher by 8%, after losing about 15% earlier over the past two days amid heightened post-IPO volatility and as investors weigh speculation around crypto regulation and the upcoming Fed rate decision. With Circle still hot off its IPO, its investors may have rotated into Coinbase, which gained 15% in the same two days Circle fell. Coinbase, which began as a crypto exchange operator but has expanded its suite of crypto services, received a batch of price target increases this week from Wall Street including from Bernstein and Oppenheimer. Coinbase is the main distribution platform for USDC, the popular stablecoin issued by Circle. It receives half of the revenue generated from the interest earned on Circle's USDC reserves. It also makes 100% of the interest on any USDC held directly on its own platform. As awareness of Circle's story grows, investors are beginning to see how Coinbase could benefit from opportunites in the stablecoin space. Shares of Circle have rocketed more than 600% since its initial public offering on June 5. Meanwhile, Coinbase is on pace for a 50% monthly gain, its best month since November and its first three-month rally since the end of 2023. Shares added more than 2% on Thursday. Investors this week were watching Federal Reserve Chair Jerome Powell, who was on Capitol Hill for his semiannual testimony to Congress. Powell is facing increasing pressure both from President Donald Trump and multiple White House officials to lower interest rates, as well as two key Fed officials who have said they will likely favor a rate cut as soon as July – which could dampen Circle's earnings. The company earns interest income on the reserves backing USDC, which are primarily held in cash at banks and short-term U.S. Treasury securities. They're also watching progress on the GENIUS (short for Guiding and Establishing National Innovation for U.S. Stablecoins) Act, which seeks to establish a regulatory framework for the use of stablecoins. The bill passed the Senate last week and now heads to the House of Representatives. The House has its own stablecoin legislation in the works, called the STABLE Act.
Yahoo
2 days ago
- Business
- Yahoo
The U.S. Senate Just Passed a Landmark Cryptocurrency Regulation Bill. Here's What Investors Need to Know.
The Senate just passed new legislation laying out the rules of the road for stablecoins. The legislation could give a huge boost to the stablecoin industry, which could grow to $2 trillion in a few years. For investors, the most attractive opportunities right now are stablecoin issuers such as Circle. 10 stocks we like better than Circle Internet Group › On June 17, the U.S. Senate officially passed the Guiding and Establishing National Innovation for U.S. Stablecoins (Genius) Act, which will create a federal regulatory framework for stablecoins. The bill will now head to the House for review, with a final signature by President Donald Trump expected before the end of the summer. As might be expected, crypto market participants widely hailed the news, and stocks tied to stablecoins surged. Here's what you need to know. The Genius Act will become the first major piece of crypto legislation passed by the Trump administration, which came into office promising a huge overhaul of the crypto sector. Previous actions, such as creation of the Strategic Bitcoin Reserve, occurred only via executive order. The Genius Act legislation is important because it helps to define the playing field for stablecoins, which have been one of the fastest-growing sectors of the crypto market. In 2020, stablecoins were valued at about $20 billion; today, they're valued at $250 billion. According to Treasury Secretary Scott Bessent, they have the potential to be worth as much as $2 trillion in just a few years. Simply stated, stablecoins are digital currencies that are pegged 1:1 to the value of another asset. In 90% of the cases, stablecoins are pegged 1:1 to the U.S. dollar. But there's no reason a stablecoin couldn't be pegged to, say, the Japanese yen. These stablecoins can be used to facilitate international trade, make digital payments, and participate in the world of decentralized finance (the blockchain version of traditional finance). The Treasury Department has even hinted that stablecoins could become a tool to reduce the nation's $37 trillion debt load and bolster the value of the dollar. The good news is that there are several different ways to participate in this growing investment trend. The most obvious way, of course, is to invest in one of the top stablecoins. Right now, the two big stablecoins are Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC), and together, they account for nearly 85% of the value of the $250 billion stablecoin industry. However, unless you're planning to participate in decentralized finance via new stablecoin yield strategies, you'll be holding an asset that will always be valued at $1. That's what makes these coins stable -- they're always supposed to hold their value since they're backed by cash. For that reason, they're often referred to as digital dollars. The next option is to invest in one of the top stablecoin issuers. The popular pick right now is Circle Internet Group (NYSE: CRCL), the issuer of the USDC stablecoin. On June 5, Circle went public via an initial public offering (IPO) and has been absolutely on fire since then. Circle is the only publicly traded pure-play stablecoin issuer, which helps to explain why investors just can't seem to get enough of it. However, other publicly traded companies have either launched stablecoins of their own or are planning to do so in the future. For example, PayPal (NASDAQ: PYPL) launched a stablecoin back in August 2023. And just as news was breaking about the passage of the Genius Act, the Wall Street Journal reported that both Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT) are exploring stablecoins of their own. New stablecoin legislation is a big step forward for the crypto market. As Trump noted in a social media post, the legislation will make the U.S. the "UNDISPUTED Leader" when it comes to digital assets. The stablecoin industry looks ready to explode in value over the next few years, and the U.S. should be a key player. But here's the thing: Stablecoins -- which are supposed to be stable -- have the potential to be extraordinarily volatile. That's what happened during the previous crypto bull market rally, when a popular stablecoin (TerraUSD) suddenly lost its peg to the dollar, costing investors billions of dollars and causing a cascading series of events that eventually contributed to the so-called crypto winter of 2022. Moreover, potential conflicts of interest could cause investors to lose faith in stablecoins. It's important to note that World Liberty Financial, a crypto venture affiliated with the Trump family, recently launched a stablecoin of its own. That has some politicians -- including some senators who voted against the Genius Act -- asking very serious questions about stablecoins. Still, it's hard not to be excited about stablecoins. They seem poised to revolutionize the world of finance, and just about everyone -- from Wall Street bankers to Washington politicians -- seem to be embracing them. It doesn't take a genius to understand that investing in this new trend early could be one way to lock in impressive long-term returns. Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dominic Basulto has positions in Amazon, Circle Internet Group, and USDC. The Motley Fool has positions in and recommends Amazon, PayPal, and Walmart. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. The U.S. Senate Just Passed a Landmark Cryptocurrency Regulation Bill. Here's What Investors Need to Know. was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Business Insider
4 days ago
- Business
- Business Insider
Coinbase Global (COIN) Adds Market Torque as U.S. Senate Ushers in Tokenized Trading
Coinbase Global (COIN) stock is flying after two pivotal developments: the U.S. Senate's passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and Coinbase's push to gain SEC approval for tokenized equity trading. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Both have massive implications for the crypto economy-focused financial technology company. While the regulatory skies are clearing for Coinbase, broader market adoption of digital assets, competition, and high expectations are reasons for caution in the years ahead, leaving me cautiously optimistic on its stock. In its most recent quarterly report, COIN announced earnings per share of $0.24, with revenues of $2 billion, which disappointed analysts who had expected EPS of $1.94. The company's forward P/E ratio is currently 53.6 compared to the sector average of 10.36. Despite this result in early May, COIN stock has gone on to vault beyond $300 per share. The GENIUS Act Legitimizes Stablecoins and Powers USDC's Growth Regulatory uncertainty has long been a major overhang for Coinbase and other crypto-centric firms, but the recent progress of the GENIUS Act marks a potential turning point. Passed by the Senate on June 17 with strong bipartisan support (68–30 vote), the Act lays out the first federal framework for stablecoin regulation, including key provisions like 1:1 reserve backing in safe assets (e.g., U.S. dollars) and anti-money laundering compliance. Crucially for Coinbase, the bill also permits non-bank entities to issue stablecoins—a major win, given the company's deep partnership with Circle Internet Group (CRCL), the issuer of USD Coin (USDC). The company's shares rose 33% in late Wednesday trade last week and are now trading 87% higher. As the second-largest dollar-backed stablecoin, USDC plays a growing role in Coinbase's business model. In the most recent quarter, USDC revenue reached $298 million, accounting for roughly 15% of Coinbase's total revenue and growing at an impressive 51% year-over-year, more than double the company's overall revenue growth of 23%. If enacted into law, the GENIUS Act could help legitimize and accelerate Coinbase's stablecoin strategy, strengthening a rapidly expanding revenue stream. Tapping the Trillion-Dollar Stablecoin Opportunity Treasury Secretary Scott Bessent recently projected that the stablecoin market could grow to $3.7 trillion in the coming years—a staggering figure that underscores the potential of this emerging asset class. For those unfamiliar, stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to assets like the U.S. dollar or gold. This structure allows users to benefit from fast, low-cost digital transactions while avoiding the extreme volatility typically associated with crypto assets. As the largest registered crypto exchange in the U.S. and a key player behind USD Coin (USDC), Coinbase is strategically positioned to capture a meaningful share of this rapidly expanding market. Coinbase's Bold Tokenized Equities Play At the same time, Coinbase is actively exploring tokenized trading, a technology that could enable 24/7 market access, faster settlement, and greater global reach. Tokenized equities—digital versions of traditional company shares that operate on blockchain infrastructure—have the potential to transform capital markets by improving efficiency and accessibility. Currently, however, tokenized equity trading remains prohibited in the U.S. Yet, the recent advancement of the GENIUS Act suggests a shifting regulatory climate that is becoming more receptive to digital assets. In that context, Coinbase's efforts to influence and align with regulators appear to be well-timed and strategically positioned for future adoption. COIN Must Navigate Legislative Hurdles Despite recent encouraging developments, key risks still loom. The GENIUS Act, while promising, is still making its way through the legislative process—and as history shows, bipartisan support in the Senate doesn't guarantee smooth passage in the House. Political pushback could result in amendments that dilute the bill's benefits for companies like Coinbase. Additionally, the path to tokenized equities remains uncertain. Their future hinges not only on favorable regulation but also on broad market acceptance and infrastructure readiness, making widespread adoption a longer-term and less certain prospect. Is Coinbase Global a Buy or Sell? On Wall Street, COIN sports a Moderate Buy consensus rating based on 13 Buy, 11 Hold, and zero Sell ratings in the past three months. COIN's average price target of $268.70 implies ~13% downside potential over the next 12 months. Bear in mind that COIN is up nearly 21% in the past five days, so its average price target hasn't yet adjusted to several analyst upgrades. In May, analyst Mark Palmer from Benchmark C o. maintained a Buy rating on COIN with a price target of $252. The rating followed Coinbase's inclusion in the S&P 500, which the analyst believes is 'likely to attract passive investment flows from funds tracking the index.' Moreover, he noted that its 'selection by the S&P 500 Committee also underscores Coinbase's adherence to high standards of profitability, regulatory compliance, and governance, reinforcing the company's strategic position in the financial sector.' COIN Enters Regulatory Slipstream Coinbase is benefiting from a wave of favorable developments that could accelerate the adoption of both its trading platform and USDC. The GENIUS Act, if fully passed, would legitimize Coinbase's fast-growing stablecoin business and strengthen its position as a key player in the digital asset ecosystem. At the same time, the company's pursuit of SEC approval for tokenized equity trading represents a bold strategic move that, if successful, could disrupt traditional finance and diversify Coinbase's revenue beyond transaction fees. This combination of regulatory momentum and long-term innovation presents a strong case for bullish investors, even as Coinbase's valuation remains elevated at a P/E of 55.3. However, competition from platforms like Robinhood (HOOD) and stablecoins, like PayPal's (PYPL) 'PayPal USD,' should not be overlooked. The GENIUS Act is also still pending final approval, and specific provisions—such as tighter regulatory scrutiny—may introduce new operational risks. Overall, Coinbase remains a high-risk, high-reward opportunity for investors seeking exposure to the rapidly evolving crypto space.
Yahoo
5 days ago
- Business
- Yahoo
Trump's Crypto Ties Still Toxic With Some Dems, Including One Seen as Industry Ally
U.S. Senator Adam Schiff was among the many Democrats who voted to pass the stablecoin bill last week, but as the Senate moves on to legislation establishing regulations for the wider U.S. crypto markets, Schiff has introduced another effort to ban President Donald Trump and other top government leaders from issuing or sponsoring cryptocurrencies. The California Democrat's legislation joins at least four other bills that similarly seek to block senior government officials and lawmakers from taking a direct hand in crypto businesses. Such concerns arose during the debate over the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and for a brief time, the bill was halted over this and other concerns from Democrats who otherwise favored the legislation. Some have argued that the better place to argue contentions of government corruption is in the market structure bill that's at the heart of what the sector is seeking in Washington. Schiff's new bill, known as the Curbing Officials' Income and Nondisclosure (COIN) Act, would — like others before it — prohibit the president, vice presidents, members of Congress and other significant government officials "from issuing, sponsoring, or endorsing digital assets, including meme coins, NFTs, or stablecoins" during their service, and for two years after it. "President Donald Trump's cryptocurrency dealings have raised significant ethical, legal and constitutional concerns over his use of the office of the presidency to enrich himself and his family," Schiff said when he introduced the bill, also backed by at least four other Senate Democrats. The crypto industry's leading political action committee, the Fairshake super PAC, spent more than $10 million dollars to oppose Schiff's chief Democratic opponent in his successful run for the Senate last year. He's been stamped with an A grade for being strongly supportive of digital assets policy by advocacy group Stand With Crypto. To succeed, any crypto bill needs significant support from Senate Democrats to bolster the reliable favor of almost all the Republicans in that chamber. Schiff is among the 18 Democrats who came out in favor of the GENIUS Act. He's not the only crypto ally in Congress looking askance at the president's family connections to tens of millions in disclosed digital assets profits. Representative Ritchie Torres, a New York Democrat, is among the most vocal supporters of crypto in the House of Representatives, and he introduced a bill last month that's broadly in line with what Schiff is pursuing. Similar legislation has also been introduced by other Democrats, including Senator Chris Murphy of Connecticut; Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee; and Representative Sam Liccardo of California. Such bills are highly unlikely to progress in the Republican-controlled Congress, though their supporters may seek to insert them in other legislation, such as the crypto industry's other legislative priority. In the past few years, President Trump transitioned from crypto skeptic to digital assets entrepreneur, launching waves of non-fungible tokens (NFTS), a self-branded memecoin and backing World Liberty Financial's various crypto efforts, including its own stablecoin. Trump has said repeatedly that he's eager to sign significant crypto legislation to secure the U.S. as an industry leader. Many Democrats, however, object to his own family standing to profit from the policies Trump's administration would in to access your portfolio
