Coinbase Global (NASDAQ: COIN) shares jumped 16% on June 18 after the U.S. Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with a vote of 68 to 30. This legislation introduces the first federal regulatory framework for stablecoin issuance, which could significantly benefit Coinbase due to its partnership with Circle Internet Group (NYSE: CRCL), the operator of USD Coin (USDC), a major stablecoin.
As of the last quarter, Coinbase generated $298 million from USDC revenue, making up over 15% of its total net revenue, with a 51% year-over-year increase. The GENIUS Act allowing non-banks to issue stablecoins could sustain this revenue without regulatory disruptions. However, the bill must also pass the House of Representatives, where it may face competition from the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which could impose additional restrictions on stablecoin issuance.
Analysts at Citigroup project that the global stablecoin market could grow from $230 billion at the end of March 2025 to between $500 billion and $3.7 trillion by 2030, indicating strong market potential for Coinbase amidst favorable U.S. government policies.
