AsianFin -- Coinbase shares surged Wednesday, jumping as much as 17% to $297.44, as investor optimism swelled following the Senate’s passage of the landmark GENIUS Act—legislation seen as a major step toward formal U.S. regulation of stablecoins.

The rally pushed Coinbase’s year-to-date gain to 20%, before the stock slightly pared gains by the close. Shares of stablecoin issuer Circle, which recently went public, surged 34%, underscoring growing market confidence in the sector’s regulatory clarity.

Passed on Tuesday, the GENIUS Act establishes a federal framework for stablecoins, aiming to increase their adoption and open the door for broader issuance by regulated firms.

Stablecoins are digital assets designed to maintain a 1:1 peg with fiat currencies like the U.S. dollar. They are typically backed by high-quality liquid reserves such as cash or U.S. Treasurys, making them critical infrastructure for the broader crypto ecosystem.

Investors see the bill as a turning point that could legitimize stablecoins in the eyes of both financial institutions and policymakers, potentially accelerating institutional adoption and boosting trading volumes on platforms like Coinbase.