- Circle shares fell following a failed House vote on crypto legislation.
- Optimism surrounding crypto regulation has helped drive Circle shares up since the company’s IPO in June.
- The legislation aims to establish federal rules for stablecoins and clarify oversight of digital assets.
Circle
shares slid on Tuesday after the
U.S. House of Representatives failed to clear a key procedural hurdle
that would have teed up votes on long-awaited crypto-related bills.
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The move dealt a major setback to the digital asset industry, which had framed this week as a
turning point for regulatory clarity
in Washington, D.C.
Circle, the stablecoin issuer that’s soared in value since its public market debut last month, fell about 5% after the vote. Crypto exchange
Coinbase
and bitcoin miner
MARA Holdings
both
slipped about 2%.
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Even after Tuesday’s drop, Circle shares are still up more than sixfold from their IPO price. The company is the issuer of USDC, the second-largest dollar-pegged stablecoin, with about 24% of the global market. Circle didn’t immediately respond to a request for comment.
The legislation, including the GENIUS Act, would mark the first time the U.S. sets federal rules for stablecoins, a $260 billion corner of the crypto market that underpins most digital asset trading. The bill establishes full-reserve requirements, mandates monthly audits, and creates a path for private companies to issue regulated digital dollars under the blessing of the U.S. government.
The GENIUS Act
passed the Senate last month
, a milestone for both the crypto industry and for President Donald Trump, who has
pushed to align his administration
with digital asset innovation. It also marked a win for the
industry, which spent more than $245 million in the 2024 cycle
to help elect what’s now seen as the most pro-crypto Congress in U.S. history.
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Treasury Secretary Scott Bessent has said the market for U.S. stablecoins could grow eightfold to more than $2 trillion in the coming years if this bill is enacted. White House AI and crypto czar David Sacks had predicted it could unlock
“trillions
” of dollars in demand for U.S. Treasury notes virtually overnight.
The vote came
just hours after
Fairshake, the crypto industry’s most powerful PAC, disclosed $141 million in cash on hand as it fights for regulatory victories and backs pro-crypto candidates heading into the 2026 midterms. The committee didn’t provide a comment for this story.
House leadership is tentatively planning a second vote as early as Tuesday evening, though it’s unclear whether the rule or bill text will be modified to satisfy holdouts.
WATCH:
Stablecoin showdown moves to the House after Senate clears crypto’s landmark bill
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