Shares of Coinbase spiked on Wednesday, with the largest US crypto exchange riding a wave of bullishness created by the Senate’s passage of the GENIUS Act this week.

The stock rose as much as 17% to $297.44, before paring gains slightly. The rally vaulted the shares to a year-to-date gain of 20%. Meanwhile, shares of recently public stablecoin issuer Circle gained 34%.

The Senate bill passed on Tuesday aims to establish a regulatory framework for stablecoins, ultimately paving the way for their more widespread use and issuance by more companies.

Stablecoins are a type of crypto intended to hold their value steady against fiat money like the dollar. They’re backed 1:1 by liquid reserves, such as dollars or cash…