Shares of crypto-linked companies jumped on Monday, as ether prices scaled their highest this year after President Donald Trump signed into law a bill regulating stablecoins in the U.S.
Trump signed the GENIUS Act late on Friday, marking a huge win for crypto industry that has been lobbying for a regulatory framework to gain greater legitimacy. The bill was passed in the House of Representatives by a vote of 308 to 122 on Thursday, after Senate approval.
Bitcoin, the world’s biggest cryptocurrency, inched 0.2 per cent up, though it remains more than 3 per cent away from its all-time high of $123,153 hit last week.
The bill bans yields or interest payments on regulated stablecoins, which Deutsche Bank said is leading to a rise in ether prices, on expectations that investors are moving into the world’s second biggest cryptocurrency as an alternative for yield generation in decentralized finance.
“Banks, payments players and fintechs would continue buying operational ETH to pay transaction fees for deploying stablecoins and tokenised assets on the blockchain,” said Gautam Chhugani, senior analyst at global digital assets, Bernstein.
Ether was last trading at $3,816.7 after hitting its highest level for the year on Sunday.
Crypto exchange Coinbase Global gained 1.9 per cent, while stablecoin issuer Circle Internet rose 0.9 per cent.
Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, mainly by crypto traders moving funds between tokens.
Some large Wall Street banks such as Bank of America have also been working on launching their own stablecoins.
FOLLOWING STRATEGY
U.S.-listed shares of companies, which have been adding cryptocurrencies to their coffers lately, were on the rise on Monday.
Shares of BitMine, where tech billionaire Peter Thiel is the top investor and whose chairman is Fundstrat’s Tom Lee, advanced 4.7 per cent. Other ether holding firms Bit Digital, BTCS and SharpLink Gaming climbed between 2.6 per cent and 9.4 per cent, respectively.
Companies such as GameStop have been rushing to add crypto to their balance sheets, following the footsteps of Strategy. Shares of the largest corporate holder of bitcoin have skyrocketed nearly 3,000 per cent since 2020 and climbed 2.2 per cent on Monday.
Blank-check firm Dynamix Corporation surged 30 per cent as the Ether Reserve, a new crypto venture backed by prominent crypto investors, was set to merge with the company to form The Ether Machine.
Other cryptocurrencies also advanced, with Solana hitting its highest level since February. The ProShares Ultra Solana ETF also jumped 16.6 per cent.
XRP also gained 1 per cent, trading close to its record highs.
The broader crypto sector’s market value hit $4 trillion on Friday, according to CoinGecko data.
