Taking a step closer to mainstream payments! &#34;The first stock of stablecoins&#34; Circle surged 30% overnight.
On Wednesday, the U.S. Senate passed the GENIUS Act with a vote of 68-30, establishing a federal regulatory framework for dollar-backed stablecoins. This news instantly ignited the cryptocurrency sector, with &#34;the first stock of stablecoins&#34; Circle's stock price soaring nearly 30% on the day, cryptocurrency exchange Coinbase rising 12%, and Robinhood increasing by 4%.
The passage of the GENIUS Act is seen as a historic breakthrough for the U.S. crypto industry. The act aims to clarify the legal status of stablecoins, defining them as digital cash, and promoting their widespread use in mainstream payments and settlements, rather than being limited to the current 80-90% of cryptocurrency asset settlement purposes.
Circle co-founder and CEO Jeremy Allaire expressed his excitement on the X platform:
<blockquote>
&#34;History is being written, and the U.S. Senate's passage of the GENIUS Act brings us one step closer to groundbreaking legislation becoming law.&#34;
</blockquote>
Although the act still requires approval from the House of Representatives and must be signed into law by Trump, Bernstein analyst Gautam Chhugani and his team are optimistic about the legislation being enacted this summer.
In their report earlier this week, they noted:
<blockquote>
&#34;The intent of the GENIUS Act is to bring stablecoin innovation back to the U.S. from overseas markets, clarifying its legal status as digital cash.&#34;
&#34;Once the act is passed (possibly by the end of summer), we expect stablecoins to evolve from the currency track of cryptocurrencies to the currency track of the internet.&#34;
</blockquote>
As the second-largest stablecoin issuer by market capitalization, Circle is seen as a core player in the cryptocurrency's move toward mainstream payments and regulated finance. Since its listing on June 5, the company's stock price has accumulated a rise of over 543%, soaring from the IPO price of $31 to a closing price of $199.59 on Wednesday.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3aec8540-86f4-4574-b916-57bcaf11220d.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3aec8540-86f4-4574-b916-57bcaf11220d.png"/>
<h2>ARK rationally retreats, cashing out $100 million at high levels</h2>
However, just as the market celebrates the regulatory breakthrough, early institutional investors betting on Circle have begun to realize their profits.
According to trading disclosures, &#34;Wood's sister&#34; Cathie Wood's ARK Invest sold 300,000 shares of Circle stock on Tuesday, valued at approximately $44.7 million, marking the second consecutive day of large-scale reductions. On Monday, ARK had already cashed out $51.7 million, with a total of 643,000 shares sold over two days, totaling approximately $96.5 million, accounting for 14% of its initial holdings.
Although this sale still enjoys substantial unrealized gains, the timing of the move has sparked market speculation: is it profit-taking or concern over potential uncertainties following regulatory implementation?
In contrast, other major shareholders like BlackRock have not disclosed similar transactions, and Circle CEO Jeremy Allaire himself only plans to sell 8% of his shares (approximately 1.58 million shares)
For a long time, ARK has been known for its strong bets on cryptocurrencies and disruptive technologies. As one of the most active institutional supporters of Bitcoin, Wood predicted earlier this year that by 2030, the price of Bitcoin could reach $1.5 million

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The passage of the "GENIUS Act" has injected a shot of adrenaline into the stablecoin and cryptocurrency industry, with Circle, the "first stock of stablecoins," soaring nearly 30% on the same day, while cryptocurrency exchange Coinbase surged 12% and Robinhood rose 4%. However, the bill still requires approval from the House of Representatives and must be signed into law by Trump, with Wall Street professionals holding an optimistic view on the legislation's implementation this summer

- The U.S. Senate passed the GENIUS Act, establishing a federal regulatory framework for dollar-backed stablecoins, leading to a nearly 30% surge in Circle's stock.  
- This legislation aims to clarify the legal status of stablecoins as digital cash, promoting their use in mainstream payments beyond current crypto asset settlements.  
- While Circle's stock has risen significantly since its IPO, ARK Invest has begun to sell off shares, raising questions about profit-taking versus concerns over regulatory uncertainties.

On fire! Circle rises another 30%, up 6 times in 10 days since its listing