Circle's stock surged 14% to $228 after Seaport Global issued a buy rating with a $235 price target, labeling the company a top-tier crypto disruptor. This rise was further bolstered by the Senate passing the GENIUS Act stablecoin legislation, establishing a federal framework for dollar-pegged stablecoins. Circle and Coinbase benefit from a revenue-sharing agreement on $61.2 billion in USDC reserves. Seaport's analyst, Jeff Cantwell, predicts the stablecoin market's growth to $2 trillion, estimating Circle's annual revenue could increase by 30% with 40% gross margins. However, he cautioned that Circle's reliance on interest income from reserves, accounting for 99% of revenue, poses a risk if interest rates decline. The GENIUS Act aims to clarify regulatory requirements for stablecoin reserves, which could encourage institutional adoption of stablecoins. Meanwhile, Robinhood's stock faced a decline amid this regulatory momentum.

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