Shares of Coinbase (NASDAQ: COIN) surged over 15% on Wednesday following a major regulatory breakthrough for the crypto sector. The U.S. Senate officially passed the GENIUS Act, a bipartisan bill that sets national standards for stablecoins and could reshape the future of digital payments.
This development marks the first major legislative win for crypto in Washington—and investors wasted no time reacting. Coinbase, which co-founded the USDC stablecoin with Circle and earns 50% of its stablecoin revenue through that partnership, saw its stock rise to over $300 per share.
What Is the GENIUS Act?
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins Act—creates a federal framework for issuing U.S. dollar-backed stablecoins. It mandates:
- Full reserve backing
- Monthly audits
- Strict capital and compliance requirements
It also prohibits yield-bearing consumer stablecoins, aiming to protect users while giving the industry clear guidelines to grow.
The House has its own version of stablecoin legislation (dubbed the STABLE Act), and the two bills will need to be reconciled before any final law is signed. However, this Senate vote is a strong signal of bipartisan support.
Why It Matters for Coinbase
Stablecoins have become one of Coinbase’s most important revenue streams after crypto trading. In Q1 2025, stablecoin-related income rose 50% year-over-year. Coinbase currently earns:
- 100% of the interest from USDC held on its platform
- 50% of total USDC revenue through its joint venture with Circle
The GENIUS Act gives that relationship even more value. If regulatory clarity leads to wider adoption of USDC, Coinbase could see explosive earnings growth from stablecoin custody, payments, and platform utility.
A New Payments Frontier
Coinbase also announced a new merchant payments product on Wednesday that allows e-commerce businesses to accept USDC with instant settlement and low fees. It’s a direct challenge to legacy payment giants like Visa and PayPal.
CEO Brian Armstrong has publicly said he wants USDC to overtake Tether as the world’s dominant stablecoin. With this new bill and a maturing regulatory environment, that goal is starting to look realistic.
What Investors Should Watch Next
- House Vote: Will the STABLE Act pass, and how will lawmakers reconcile it with GENIUS?
- Stablecoin Market Growth: The global stablecoin market is approaching $260 billion. That could swell dramatically under new legislation.
- Coinbase Earnings: With new merchant products and rising USDC volumes, Q2 2025 earnings could surprise to the upside.
- Competitive Landscape: JPMorgan, PayPal, and Circle are all launching stablecoin initiatives. But Coinbase’s early lead and infrastructure advantage may protect its turf.
Risks Still Remain
- The bill still needs to become law
- Broader crypto markets remain under pressure
- Stablecoins face reputational risk if poorly managed platforms collapse
Still, institutional confidence is growing. Circle stock, which debuted at $31 during its June IPO, has skyrocketed to $180 in just two weeks. Coinbase appears to be riding that same momentum wave.
Bottom Line
The Senate’s passage of the GENIUS Act may be a turning point for Coinbase and the broader crypto industry. For investors looking at COIN stock, the question now shifts from “Can they survive crypto winter?” to “Can they lead the next era of regulated digital finance?”
If USDC adoption expands as expected and House negotiations don’t derail progress, Coinbase may have just unlocked a whole new revenue engine.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
