Coinbase Stock Hits ATH as Market Eyes GENIUS Act Signing
2 min read
Shares of Coinbase Global Inc. rose sharply today, reaching an all-time high of $436, a 6% increase driven by growing market optimism. This increase comes ahead of the expected signing of the GENIUS Act at the White House, which is a key development for crypto regulation in the U.S. Investors are bullish about Coinbase because the new stablecoin laws are viewed as a significant improvement for the digital asset market. For Coinbase, which relies on stablecoins like USDC for its payment and crypto storage services, the GENIUS Act could create new ways to earn money and build trust among large investors in its platform. As of the time of writing, COIN is trading at $423.20, representing an approximate 3% increase, according to TradingView data . GENIUS: A Framework For Dollar-Backed Stablecoins At the core of the GENIUS Act is a comprehensive regulatory framework for dollar-pegged payment stablecoins. It mandates strict 1:1 reserve backing, ensuring that an actual U.S. dollar or an equivalent low-risk asset fully backs each digital dollar. Issuers would obtain either federal or state licenses and comply with Anti-Money Laundering (AML) protocols. The bill also includes necessary consumer protection measures . Stablecoin issuers are restricted from using customer reserves for anything beyond redemption or safe investments, such as short-term treasury securities. This will reduce systemic risks and avoid the kind of shadow banking issues that have plagued parts of the financial sector. Senator Bill Hagerty, the bill’s sponsor, said the GENIUS Act would allow businesses and consumers to make near-instant payments instead of waiting days or weeks for traditional banking settlements. Political Divisions and Trump’s Crypto Ties While the bill has gained bipartisan support, it initially faced hurdles. A cloture vote in May failed due to concerns from several Senate Democrats, many of whom questioned Donald Trump’s financial connections to the cryptocurrency industry. Senator Elizabeth Warren was one of the bill’s most vocal critics , alleging that Trump and his family could earn “hundreds of millions” through his USD1 stablecoin venture. Others, such as Senator Mark Warner, voiced caution but acknowledged the need for the United States to remain competitive in the evolving digital currency space. Coinbase Urges House to Pass CLARITY Act Swiftly Recently, Coinbase’s lobbying arm and several crypto firms urged the U.S. House of Representatives to swiftly pass the CLARITY Act . In a letter, several advocacy groups asked lawmakers to support the bill, emphasizing the need for clear rules as the crypto industry rapidly evolves. The CLARITY Act would define the regulatory roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under the bill, the CFTC would oversee most crypto activities, while the SEC would continue to regulate crypto-related securities. As such, the SEC would provide the clarity developers, investors, and institutions need to innovate the U.S. market. The post Coinbase Stock Hits ATH as Market Eyes GENIUS Act Signing appeared first on TheCoinrise.com .

Source: The Coin Rise