Coinbase Stock Pops as Senate Passes GENIUS Stablecoin Bill

Core Viewpoint - The passing of the GENIUS Act by the U.S. Senate is a significant development for Coinbase Global, establishing a federal regulatory framework for stablecoin issuance, which is expected to benefit the company in the long term [1][2]. Group 1: Legislative Impact - The GENIUS Act allows non-banks to issue stablecoins, which is crucial for Coinbase due to its partnership with Circle Internet Group, the operator of USD Coin (USDC) [2][3]. - Coinbase earns 100% of the reserve income from USDC deposits on its platform and 50% from deposits outside of Coinbase, with USDC revenue reaching $298 million last quarter, accounting for over 15% of total net revenue and growing nearly 51% year-over-year [3][4]. - The act legitimizes the stablecoin market by providing a bank-like regulatory framework, which includes capital, liquidity, and risk management rules for stablecoin issuers [4][5]. Group 2: Market Potential - Analysts predict the global stablecoin market, valued at $230 billion at the end of March 2025, could grow to between $500 billion and $3.7 trillion by 2030, indicating a potential increase of at least 600% [8]. - The combination of the GENIUS and STABLE bills is likely to become law, allowing Coinbase to capitalize on the anticipated growth in the stablecoin market with fewer regulatory hurdles [7][8]. - The favorable regulatory environment and growth potential in the stablecoin market position Coinbase for a potential bull run in its stock price [8].