On Wednesday afternoon, shares of Coinbase Global (COIN) surged by 11%, leading the S&P 500 gainers, following the Senate's approval of the GENIUS Act. This legislation aims to establish federal regulations for the use of stablecoins, which are cryptocurrencies linked to traditional currencies or financial assets like the U.S. dollar.

The passage of this bill paves the way for banks, fintech companies, retailers, and other entities to utilize stablecoins. It marks a significant milestone as the first major legislation passed by Congress concerning the digital currency sector.

Additionally, the news of the Senate's decision caused shares of Circle Internet Group (CRCL), the issuer of USDC stablecoin, to surge by 20% in recent trading sessions.

Next, the bill will proceed to the House, where a different version of stablecoin regulation known as the STABLE Act is being considered. This alternative legislation has its own unique features compared to the GENIUS Act.

Before the Senate's decision, Coinbase shares had only risen by slightly over 2% since the beginning of the year.