Shares in crypto company Circle (CRCL) jumped: here’s why

Circle Internet Group, a stablecoin issuer, only just went public a few weeks ago, on 5 June, 2025. Its share price quickly flew up the page, and it just rose again off the back of the US Senate passing stablecoin legislation. It might seem ironic that legislation setting up rules and limits on digital assets, like stablecoins, would propel the stock to new highs. Especially as it still needs to be sent to the House of Representatives, before being enacted by President Trump. But these rules are exactly what industry advocates have long wanted: a clear framework with guardrails as to what the US’s policy will be on stablecoins. 

If you’re considering investing in Circle, here are some key things you may want to consider as part of your broader research. This article is for information purposes only and should not be construed as investment advice.

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Why did Circle’s share price increase?

In an industry plagued by scams, Circle seems to stand apart as one of the few regulated stablecoin players. That means it aims to follow the legal and financial rules set out by regulatory bodies, unlike many cryptocurrency firms that live in legal grey areas. This puts it well ahead of the curve, and has helped its stock price rise to new highs, now that the US Senate has passed the GENIUS Act. There’s more to it than meets the eye, though. This article will dive into all of the factors driving its increasing popularity among retail investors.

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What is Circle?

Circle, founded over a decade ago, is a financial technology company that issues USD Coin (USDC), which is a stablecoin pegged 1-to-1 with the US dollar. Circle co-founded USDC with Coinbase, and it's now the second-largest stablecoin globally in terms of market capitalisation, behind Tether (USDT). On 5 June 2025, Circle had its initial public offering (IPO) on the NYSE under the ticker CRCL. Its share price jumped soon after, likely helped by optimism around US President Trump’s crypto-friendly stance.

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What are stablecoins?

Stablecoins are digital currencies pegged to real-world assets like fiat currencies, commodities, or other cryptocurrencies. Their purpose is to offer the benefits of cryptocurrencies, such as fast settlement, privacy, and security, as well as borderless payments, while reducing volatility. Basically, they are a form of cryptocurrency offering greater financial stability. That being said, stablecoins also carry risks, including potential de-pegging from their underlying asset, regulatory uncertainties, and vulnerabilities in the reserves or algorithms that maintain their stability.

The World Economic Forum reports that the global supply of stablecoins has increased 28% year-over-year, reaching $208bn in 2025. Meanwhile, total stablecoin transfer volume hit $27.6tr last year, exceeding the combined volume of Visa and Mastercard in 2024.

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Types of stablecoins

There are mainly three types of stablecoins:
1. Fiat-collateralised: backed by fiat reserves like USD or GBP
2. Crypto-collateralised: pegged to cryptocurrencies such as Ethereum
3. Algorithmic: use code to regulate supply and maintain price

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How stablecoins support financial infrastructure

Stablecoins are playing an increasingly important role in global financial infrastructure. They enable faster, cheaper money transfers, simplify digital asset payments, and allow businesses to operate directly on public blockchains.

Circle’s stablecoin, USDC, is being positioned not just as a crypto asset but as a core element to payment processing for companies. Stablecoins are an increasingly popular foray from traditional systems to the digital economy transition for e-commerce firms.

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What is the GENIUS Act?

The GENIUS Act was a big deal for Circle, as it’s the first major US legislation for digital currencies. GENIUS paves the way for a long-awaited framework for stablecoin issuers like Circle. According to Christian Catalini, the founder of MIT’s Cryptoeconomics Lab, “The GENIUS act opens the floodgates.” He added, “Consumers will all have more choices. This will bring more competition and innovation in payments.”

If that turns out to be true, with Circle’s now undeniable visibility among big financial players such as hedge funds and institutional investors, traditional finance may now see Circle as a gateway or potential partner into regulated digital assets.

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5 other reasons Circle’s share price jumped:

1. Regulatory clarity will benefit compliant firms
   Circle’s early alignment with the expected regulations set out in the GENIUS Act seems to have given investors confidence. While it's a saturated industry, their veteran status has given them a competitive edge amidst the newcomers trying to adapt to the new legal framework. It won’t need to scramble to meet new standards, unlike many rivals.
2. USDC’s market readiness
   Among all stablecoins, USDC is already one of the most widely adopted and trusted. It meets most of the new regulatory requirements, giving it a critical head start. According to Circle, USDC is the world’s largest regulated stablecoin. Tether, on the other hand, could now face challenges around its reserve composition. Tether’s reserves historically included commercial paper and non-US dollar assets, a practice that would be banned under the GENIUS Act. Meaning, in order to comply, Tether would either need to restructure its reserves or risk losing US market access.
3. Increased institutional adoption
   The legislation allows financial services institutions, like US legacy banks, to issue stablecoins with fewer capital requirements. These big financial institutions may now seek established partners like Circle or Coinbase to accelerate their entry into services like embedded payments, which take place within apps or other digital platforms, and real-time settlement, where payments are completed instantly rather than taking days.
4. IPO momentum
   Circle is now publicly traded after over a decade of being private. This is actually Circle’s second try at going public, as the 2021 SPAC (special purpose acquisition company) deal intended to bring it to market was ultimately abandoned due to regulatory concerns. Its share price is benefiting from both legislative tailwinds and general IPO hype.
5. Rise of interest in digital payments
   Blockchains payments are on the rise. And unlike decentralised currencies or poorly regulated crypto projects, Circle stands out for its transparency. 

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Should you invest in Circle?

Even though the US just passed the GENIUS Act, the vast majority of countries have not passed similar laws. Meaning, for the time being there is uneven terrain for stablecoin adoption worldwide. And given Circle’s boom in share price over the last few weeks, it may now be overvalued. CRCL's price to earnings (or P/E ratio) is extremely high. This metric is calculated by dividing the stock price by earnings per share (EPS), and so a high P/E ratio means the stock is expensive relative to what it's currently worth. 

That means just like all investments, Circle’s stock offers both opportunity and risk. Its regulatory-first approach positions it well to capture institutional and retail interest alike. But like any early-stage public company operating in a fast-changing sector, volatility is likely.

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How can I invest in Circle?

This article is for informational purposes only and should not be construed as investment advice. But if after conducting your own research on Circle, you decide you would like to add it or another stablecoin issuer to your portfolio, there are many ways to do so. 

UK investors will first want to choose between a GIA (general investment account), a stocks and shares ISA (or an individual savings account), and a SIPP (or self-invested personal pension). There are tax benefits to investing in an ISA or SIPP. And investing in Circle or any other stablecoin issuer from these accounts allows you to invest in cryptocurrency-adjacent investment in a tax-efficient way. 

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