After the passage of the U.S. Stablecoin Act… Crypto stocks rise, card stocks fall

Cryptocurrency-related stocks surged on the New York Stock Exchange, while card companies such as Visa and Mastercard saw their stock prices decline. This happened as the stablecoin-related 'GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins Act)' bill passed the full session of the U.S. Senate.

On the 18th (local time), Coinbase shares closed at $295.29, up 16.32% from the previous trading day. Circle, a stablecoin issuer that went public on the 5th, soared 33.82% in just one day. In contrast, shares of card companies such as Visa (-4.88%), Mastercard (-5.39%), and PayPal (-2.97%) all experienced declines.

The GENIUS Act, passed by the U.S. Senate, centers on allowing private companies to issue stablecoins pegged to the U.S. dollar, provided they comply with certain regulations. It is considered a first step in recognizing cryptocurrencies as a part of the institutional financial system. Anticipation that this bill will serve as a catalyst for the growth of the stablecoin market drove related stocks higher.

On the other hand, the drop in card company stocks was due to the increased likelihood that distribution and platform companies would enter the payments market. Until now, consumers buying goods on Amazon or Walmart had to go through intermediaries like Visa and Mastercard, but in the future, retailers will be able to lower fees by issuing their own coins. Il-Hyuk Kim, a researcher at KB Securities, said, "Although some provisions of the bill may undergo amendments, it is highly likely to be enacted into law."

Hyun-Joo Yang, reporter hjyang@hankyung.com