US Senate Stablecoin Bill Fuels 20% Rally in Circle, Seaport Global Rates Buy
The US Senate’s recent bipartisan passage of the stablecoin regulatory bill has set clear rules requiring issuers to fully back assets, disclose reserves monthly and undergo annual audits for market caps over $50 billion. Following the vote, Circle (CRCL) shares surged 20% on Friday—bringing gains to 248% since its June 5 IPO—and closed at $199. Seaport Global analyst Jeff Cantwell initiated a “Buy” rating on CRCL with a $235 price target, citing an optimistic outlook for the global stablecoin market expanding from $260 billion to $2 trillion. Cantwell forecasts Circle’s revenue rising from $1.68 billion in 2024 to $3.5 billion next year, driven by institutional adoption of regulated stablecoins and the launch of its Circle Payments Network (CPN) for low-cost, real-time cross-border transfers using USDC and EURC. Recent collaborations—such as Shopify and Coinbase’s Commerce Payments Protocol—underscore the growing traction of stablecoin payments. Cantwell also highlights Circle’s competition with Visa and Mastercard, whose shares dipped amid the regulatory excitement. Coinbase (COIN), an early backer of CRCL, saw its stock climb 3% on the news. The bill now moves to the House before reaching the president’s desk.
Bullish
The stablecoin regulatory bill’s bipartisan passage and clear compliance framework directly improved market confidence in regulated digital assets. Circle’s stock rally of 20%—and 248% since its IPO—coupled with Seaport Global’s “Buy” rating and optimistic revenue forecasts underscore strong institutional demand for stablecoins. The launch of Circle Payments Network and high-profile partnerships further boost adoption prospects. While Visa and Mastercard shares softened, Coinbase’s stock gained modestly, reflecting wider sector uplift. Short term, traders can expect continued volatility but upward momentum in CRCL, driven by legislative clarity and growth catalysts. Long term, the stablecoin market’s projected expansion to $2 trillion and Circle’s revenue growth support a sustained bullish outlook.