Circle stock drops after House blocks key procedural vote on stablecoin legislation

Circle shares slid connected Tuesday aft the U.S. House of Representatives failed to wide a cardinal procedural hurdle that would person teed up votes connected long-awaited crypto-related bills.

The determination dealt a large setback to the integer plus industry, which had framed this week arsenic a turning constituent for regulatory clarity successful Washington, D.C.

Circle, the stablecoin issuer that's soared successful worth since its nationalist marketplace debut past month, fell astir 5% aft the vote. Crypto speech Coinbase and bitcoin miner MARA Holdings both slipped astir 2%.

Even aft Tuesday's drop, Circle shares are inactive up much than sixfold from their IPO price. The institution is the issuer of USDC, the second-largest dollar-pegged stablecoin, with astir 24% of the planetary market. Circle didn't instantly respond to a petition for comment.

The legislation, including the GENIUS Act, would people the archetypal clip the U.S. sets national rules for stablecoins, a $260 cardinal country of the crypto marketplace that underpins astir integer plus trading. The measure establishes full-reserve requirements, mandates monthly audits, and creates a way for backstage companies to contented regulated integer dollars nether the blessing of the U.S. government.

The GENIUS Act passed the Senate past month, a milestone for some the crypto manufacture and for President Donald Trump, who has pushed to align his administration with integer plus innovation. It besides marked a triumph for the industry, which spent much than $245 cardinal successful the 2024 cycle to assistance elite what's present seen arsenic the astir pro-crypto Congress successful U.S. history.

Treasury Secretary Scott Bessent has said the marketplace for U.S. stablecoins could turn eightfold to much than $2 trillion successful the coming years if this measure is enacted. White House AI and crypto czar David Sacks had predicted it could unlock "trillions" of dollars successful request for U.S. Treasury notes virtually overnight.

The ballot came just hours after Fairshake, the crypto industry's astir almighty PAC, disclosed $141 cardinal successful currency connected manus arsenic it fights for regulatory victories and backs pro-crypto candidates heading into the 2026 midterms. The committee didn't supply a remark for this story.

House enactment is tentatively readying a 2nd ballot arsenic aboriginal arsenic Tuesday evening, though it's unclear whether the regularisation oregon measure substance volition beryllium modified to fulfill holdouts.

WATCH: Stablecoin showdown moves to the House aft Senate clears crypto's landmark bill