The financial markets are responding to recent developments in Washington, D.C., where the House of Representatives passed the Genius Act. This legislation establishes clear requirements for stablecoin issuers operating in the United States, mandating that they hold an equivalent amount in U.S. currency, Treasury bills, or other reserves for each stablecoin issued. Additionally, it classifies stablecoin issuers as financial institutions, subjecting them to specific regulatory guidelines. The cryptocurrency industry has largely welcomed this regulation as a positive step toward clarity and legitimacy.
The price of Ethereum has surged following the announcement, reflecting market optimism. As an equities trader, I am closely monitoring two stocks in particular: Coinbase Global, Inc. (COIN) and Circle Internet Financial (CRCL). $CRCL ( ▲ 2.46% ) ’s trajectory is particularly noteworthy. Following its recent initial public offering (IPO) at $50 per share, the stock gained significant momentum, peaking just below $300. After finding support around $175, it is now trending upward again, approaching the $300 mark. Whether it will retest its all-time high remains to be seen.
The passage of the Genius Act has sparked enthusiasm in cryptocurrency markets and related equities, creating opportunities for profit-taking. Intraday traders may find potential in short-term price swings. Currently, $CRCL ( ▲ 2.46% ) has an Average True Range (ATR) of $26.44, $COIN ( ▲ 6.52% ) has an ATR of $18.33, and Robinhood Markets, Inc. ($HOOD ( ▲ 2.84% )) has an ATR of $4.80. These levels indicate sufficient volatility for intraday trading strategies.
Over the coming days, traders should closely monitor the price movements of these equities, using Ethereum’s price as a reference for confluence with price action. However, trading stocks heavily influenced by news events carries inherent risks. Exercise caution and conduct thorough analysis before executing trades. Best of luck in the markets.