Cryptocurrency-related stocks surged Friday as the U.S. House of Representatives passed the Landmark Stubcoin Act and marked the first major national cryptocurrency law in American history. The genius law establishing a regulatory framework for stable rocks supported by US dollars and other low-risk assets is expected to be signed into law by President Trump on Friday.
The law represents a major victory for the crypto industry, which has long lobbyed Congressional legislatures and has invested heavily in the 2024 election cycle to support pro-cryptic candidates, including Trump.
Historic Cryptography Passes Congress
The Genius Act sets up a comprehensive regulatory regime for Stablecoins, a kind of cryptocurrency backed by trusted assets such as the US dollar. The law requires that Stable Coins be supported one-to-one for US dollars or other low-risk assets, providing stability to traders using these coins to move funds between different crypto tokens. The clarity of this regulation is expected to encourage greater adoption of digital currencies and further introduce cryptocurrencies into the mainstream financial system.
The bill has attracted significant bipartisan support, with about half of Democrats joining the majority of Republicans and passing the measure.
Advocates argue that the law provides clear, much-needed rules for fast-growing industries and ensures that the US remains competitive in advance of its payment system. The crypto industry was pushing for such a regulatory framework in the hope that more people would encourage digital currency and justify the sector.
President Trump, who once debated Bitcoin as a scam, has won support from the sector and has become a strong supporter of the industry after developing business relations through ventures like the world’s Liberty Financial.
The law is one of three crypto-friendly bills moving forward in Washington with Trump support, and marks a major shift in the regulatory landscape of digital assets.
Coinbase and Robinhood located for growth
Coinbase Global (NASDAQ:COIN) shares reached $443.30, reaching a new 52-week high amid news on crypto law. Major cryptocurrency exchange platforms operating in the US and internationally can benefit significantly from clearer Stablecoin regulations.
With its market capitalization of $112.8 billion and strong financial metrics, including a profit margin of 22.03% and 12-month revenue of $6.67 billion, Coinbase is well placed to take advantage of the rise in digital assets institutional and retail adoption.
Robinhood Markets (NASDAQ: HOOD) surged even more dramatically, rising 6.17% to $111.96, reaching a new high. The financial services platform, which allows users to invest in cryptocurrency along with stocks and ETFs, provided exceptional returns with one-year returns of 200.64% and 390.67% annual earnings.
With 2,300 employees and a market capitalization of $98.8 billion, Robinhood’s crypto products are becoming increasingly important, especially among younger investors.
The companies are advocates of the voices of crypto regulations and are expected to benefit from the justifications offered by the Genius Act. The law can drive increased volume of transactions, attract clients from new institutions, and reduce the uncertainty among regulators that previously prevented the adoption of crypto.
Analysts point out that clearer rules regarding Stable Coins could also lead to more traditional financial institutions entering the crypto space and increasing liquidity and trading activity across the market.
Disclaimer: The author does not or has the position of the securities discussed in the article. All stock prices were quoted at the time of writing.