Stocks of cryptocurrency companies such as Coinbase Global (COIN) and Circle (CRCL) are up sharply after U.S. President Donald Trump signed into law a bill that regulates stablecoins.
Trump has signed the “GENIUS Act” into law, marking a huge win for the crypto industry that had been lobbying for a regulatory framework to gain greater legitimacy among investors.
The crypto legislation landed on Trump’s desk after it was passed in the House of Representatives by a vote of 308 to 122, following earlier approval in the U.S. Senate.
The GENIUS Act bans yields, or interest payments, on regulated stablecoins, a move that is helping to boost cryptocurrencies such as Ethereum (ETH) that provide yield generation.
Ethereum is currently trading at $3,795.40 U.S., its highest level of the year.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar or price of gold.
Stablecoin use has exploded in recent months, with some Wall Street banks such as Bank of America (BAC) announcing plans to launch their own stablecoins.
News that Trump signed the GENIUS Act into law has crypto stocks such as Coinbase Global and stablecoin issuer Circle Internet Group trading higher.
Other well-known crypto stocks such as Strategy (MSTR) and miners such as Riot Platforms (RIOT) are also trending upwards, with each stock rising between 2% and 3% on July 22.
At the same time, cryptocurrencies are advancing, with prices for digital assets such as Solana (SOL) climbing higher by about 3%.
The price of Bitcoin (BTC), the largest cryptocurrency by market capitalization, is up 2% in the past 24 hours and trading at $119,300 U.S., not far from its all-time high.