Circle’s shares fell sharply today, even as President Donald Trump signed the long-awaited GENIUS Act into law—landmark legislation that finally establishes a regulatory framework for stablecoins in the United States. On the surface, this should have been a triumphant moment for Circle Internet Financial, the issuer of USD Coin (USDC), the second-largest stablecoin by market cap. Instead, investors reacted with a muted shrug and, in fact, a selloff. By midday, Circle’s stock (CRCL) was down more than 5%, having opened at $245 and dipping to as low as $222, wiping out much of the recent rally that had anticipated the bill’s signing.
This decline appears to reflect a classic case of “buy the rumor, sell the news.” For weeks, markets had been pricing in a favorable outcome for Circle as lawmakers signaled bipartisan support for the GENIUS Act. Traders and long-term holders alike bet on the assumption that a regulatory green light would boost the company’s value, not just by legitimizing its flagship product, USDC, but also by giving it a competitive edge over less-compliant rivals like Tether. However, once the law was signed into reality, short-term speculators took profits and exited their positions, leading to a dip in price despite the fundamentally bullish news.
Adding to the uncertainty is the memory of procedural whiplash just days earlier. A scheduled vote in the House was derailed by internal Republican disputes over the scope of amendments and timing, prompting sudden jitters in the crypto market and a brief selloff in Circle shares. Although those issues were ultimately resolved and the bill sailed through both chambers, the volatility served as a reminder that nothing is guaranteed until ink meets paper. That episode may have left lingering nerves in the investor base, with some now choosing to de-risk rather than ride the next wave of legislative ambiguity.
Moreover, the GENIUS Act, while significant, doesn’t provide immediate operational or revenue benefits for Circle. It outlines how stablecoin issuers must handle reserves, audits, and disclosures, which benefits the ecosystem long-term but doesn’t materially change Circle’s day-to-day business—at least not overnight. As a result, some analysts suggest the market was simply overenthusiastic in the run-up to the law’s passage and is now undergoing a correction to more realistic valuations.
Despite the short-term market reaction, the strategic outlook for Circle remains strong. The company now operates in a regulatory environment that favors transparency and legitimacy—precisely the attributes it has spent years cultivating. With the law signed, Circle is positioned to work more closely with banks, fintech firms, and government entities who were previously hesitant to engage in stablecoin transactions under regulatory ambiguity. In time, this could translate into stronger institutional adoption and more robust demand for USDC across decentralized finance (DeFi), remittances, and tokenized treasury products.
For now, the dip in CRCL may reflect temporary profit-taking and regulatory fatigue. But the foundation laid today by Trump’s signature may prove to be the bedrock of Circle’s next growth phase—one built not on speculative momentum, but on long-term regulatory clarity and institutional trust.