Cryptocurrency-related stocks soared on Friday as the US House of Representatives passed landmark stablecoin legislation, marking the first major national cryptocurrency law in American history. The Genius Act, which establishes a regulatory framework for stablecoins backed by US dollars and other low-risk assets, is expected to be signed into law by President Trump on Friday.
The legislation represents a significant victory for the crypto industry, which has lobbied Congress for years and invested heavily in the 2024 election cycle to support pro-crypto candidates including Trump.
Historic Crypto Legislation Passes Congress
The Genius Act sets up a comprehensive regulatory regime for stablecoins, a type of cryptocurrency backed by reliable assets such as the US dollar. The legislation requires stablecoins to be backed one-for-one with US dollars or other low-risk assets, providing stability for traders who use these coins to move funds between different crypto tokens. This regulatory clarity is expected to spur greater adoption of digital currencies and bring cryptocurrency more into the mainstream financial system.
The bill drew significant bipartisan support, with about half of Democrats joining the majority of Republicans in passing the measure.
Supporters argue the legislation provides much-needed clear rules for a rapidly growing industry, ensuring the US remains competitive in advancing payment systems. The crypto industry had been pushing for such regulatory framework in hopes it would encourage more people to use digital currency and legitimize the sector.
President Trump, who once derided Bitcoin as a scam, has become a strong supporter of the industry after winning backing from the sector and developing business ties through ventures like World Liberty Financial.
The legislation is one of three crypto-friendly bills advancing in Washington with Trump’s backing, signaling a significant shift in the regulatory landscape for digital assets.
Coinbase and Robinhood Positioned for Growth
Coinbase Global (NASDAQ: COIN) shares jumped 7.92% to $443.30 as of Friday morning, hitting a new 52-week high amid the crypto legislation news. The leading cryptocurrency exchange platform, which operates in the United States and internationally, stands to benefit significantly from clearer stablecoin regulations.
With a market capitalization of $112.8 billion and strong financial metrics including a 22.03% profit margin and $6.67 billion in trailing twelve-month revenue, Coinbase is well-positioned to capitalize on increased institutional and retail adoption of digital assets.
Robinhood Markets (NASDAQ: HOOD) surged even more dramatically, gaining 6.17% to $111.96 and also reaching new highs. The financial services platform, which allows users to invest in cryptocurrencies alongside stocks and ETFs, has delivered exceptional returns with a 200.64% year-to-date gain and 390.67% one-year return.
With 2,300 employees and a market cap of $98.8 billion, Robinhood’s crypto offerings have become increasingly important to its business model, particularly among younger investors.
Both companies have been vocal advocates for crypto regulation and are expected to benefit from the legitimization that the Genius Act provides. The legislation could drive increased trading volumes, attract new institutional clients, and reduce regulatory uncertainty that has previously hindered crypto adoption.
Analysts note that clearer rules around stablecoins could also pave the way for more traditional financial institutions to enter the crypto space, potentially increasing overall market liquidity and trading activity.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
