Circle, Coinbase Thrive Amidst Fed Rate Cut Speculation

Circle and Coinbase gained after Federal Reserve Chair Jerome Powell signaled potential rate cuts by September 2025. Significant optimism has emerged among major crypto companies and stablecoin issuers due to these hints.

Both firms are central to the stock rally, with Circle’s regulatory win following the GENIUS Act passage adding momentum. According to Jeremy Allaire, Co-founder & CEO of Circle,

“History is being made, as the US Senate passes the GENIUS Act, taking us one step closer to breakthrough legislation being signed into law that will drive US economic and national competitiveness for decades to come.”

Coinbase’s position is strengthened by pro-crypto regulation advocacy. Such developments herald new opportunities for both entities.

The market has reacted positively, with Circle shares rising significantly. Seaport Research estimates a potential stablecoin market cap of $500 billion by 2026. The anticipation of rate cuts is already creating substantial economic ripples.

The broader crypto ecosystem, including BTC and ETH, experienced funding inflows and asset rallies. Historic rate cut cycles have shown similar financial outcomes, enhancing institutional adoption and boosting overall market sentiment.

Previous rate cut cycles have influenced tech and crypto rallies, as seen in late 2019 and March 2020. This recent surge mirrors earlier events and is further buoyed by significant regulatory advances.

According to Seaport Research, expected gains could exceed original projections, especially as regulatory clarity improves. Institutional interest remains high, forecasting potential bullish trajectories for decentralized finance protocols.