Circle Stock Falls After House Blocks Procedural Vote on Legislation

Circle Stock Plummets Following House Blockade of Key Cryptocurrency Legislation

Shares of Circle Internet Group experienced a sharp decline of nearly 25% this week after the U.S. House of Representatives blocked a procedural vote on significant cryptocurrency legislation. The move halted efforts by leading Republicans to expedite the bill, which had been widely anticipated to bring regulatory clarity to the crypto sector. This setback erased much of the gains Circle had achieved since its June initial public offering, gains that had been driven by optimism surrounding the potential enactment of federal stablecoin regulations.

The GENIUS Act and Its Industry Implications

At the heart of the legislative impasse is the GENIUS Act, a bill designed to establish the first comprehensive federal framework for stablecoins—a $260 billion segment of the cryptocurrency market that supports the majority of digital asset trading. The proposed legislation would require stablecoins to be fully backed by reserves, mandate monthly audits, and create a regulatory pathway for private companies to issue government-supervised digital dollars.

Circle, the issuer of USDC—the world’s second-largest dollar-pegged stablecoin, commanding approximately 24% of the global market—had seen its stock price surge more than sixfold since its IPO. Shares reached a 52-week high of $200.90 following the Senate’s passage of the GENIUS Act. However, the House’s refusal to advance the bill triggered a steep selloff, with Circle’s stock falling 24.9% over the week. Other crypto-related equities, including Coinbase and bitcoin miner MARA Holdings, also experienced declines of around 2%.

Regulatory Setback and Industry Response

The failed House vote represents a significant setback for the digital asset industry, which had viewed this week as a critical juncture for regulatory certainty in Washington. The Senate’s approval of the GENIUS Act last month was hailed as a milestone for both the crypto sector and the Trump administration, which has expressed support for aligning federal policy with digital asset innovation. The industry has invested heavily in lobbying efforts, spending over $245 million during the 2024 election cycle to help elect what is now regarded as the most pro-crypto Congress in U.S. history.

Treasury Secretary Scott Bessent has projected that the U.S. stablecoin market could expand eightfold to exceed $2 trillion if the legislation is enacted. Meanwhile, White House AI and crypto czar David Sacks has suggested that the bill could unleash “trillions” of dollars in demand for U.S. Treasury notes almost immediately.

The House vote occurred shortly after Fairshake, the crypto industry’s most influential political action committee, disclosed it holds $141 million in cash as it campaigns for regulatory victories and supports pro-crypto candidates ahead of the 2026 midterm elections.

Outlook and Next Steps

Despite the recent market volatility, some analysts remain cautious. The Motley Fool Stock Advisor refrained from recommending Circle Internet Group stock, citing persistent regulatory uncertainty. House leadership is tentatively planning a second vote as early as Tuesday evening, though it remains unclear whether the bill’s text or procedural rules will be amended to address concerns from dissenting members. Circle has not issued an immediate response to requests for comment.