Crypto Stocks Rally as Circle Surges on Clarity Act Deal

TLDR

• Crypto stocks rallied on Monday as lawmakers advanced discussions on the Clarity Act.
• Circle shares surged 19.89% to close at $119.53, leading gains among crypto-linked companies.
• Coinbase rose 6.14%, while Bitgo climbed 10.26% and SOL Strategies jumped 17.83%.
• Bitcoin traded above $80,000 and gained 2.12% by late evening trading.
• Major U.S. stock indexes declined, with the Dow falling 1.13% and the S&P 500 dropping 0.41%.

Crypto-linked equities advanced on Monday as lawmakers moved closer to resolving the dispute over the Clarity Act. Circle led gains with a near 20% surge, while bitcoin climbed above $80,000. Meanwhile, major U.S. indexes declined as investors reacted to geopolitical tensions.

Crypto Stocks Rally on Circle Surge and Bitcoin Strength

Circle shares jumped 19.89% to close at $119.53 on Monday. The USDC issuer has gained 32.4% over the past month and 50.7% year-to-date.

Coinbase Global rose 6.14% and closed at $202.99. BitGo climbed 10.26% to $11.50, while Robinhood added 3.92% during the session.

SOL Strategies advanced 17.83% as trading volumes increased. At the same time, bitcoin traded at $80,020, up 2.12% by 9:20 p.m. ET.

However, broader markets moved lower during the session. The Dow Jones Industrial Average fell 1.13%, and the S&P 500 declined 0.41%.

Traders linked the gains in digital assets to legislative progress in Washington. Lawmakers reported movement on language tied to stablecoin oversight.

Circle benefited directly from optimism around stablecoin regulation. Its rally outpaced peers as investors reacted to policy developments.

Market participants also tracked bitcoin’s move above $80,000. The price increase supported sentiment across crypto-related equities.

Equity markets outside crypto faced pressure from geopolitical concerns in the Middle East. In contrast, digital asset stocks posted strong daily gains.

Clarity Act Compromise Addresses Stablecoin Yield Limits

On Friday, Sens. Angela Alsobrooks and Thom Tillis finalized a compromise on stablecoin yield language. Their agreement addressed a key dispute in the Clarity Act debate.

The updated provision blocks covered parties from paying interest to U.S. stablecoin holders. It also bars payments that mirror interest on bank deposits.

The text prohibits compensation offered solely for holding stablecoins. Lawmakers drafted the language to prevent products that resemble deposit accounts.

Banking trade groups criticized the proposed revision on Monday. They argued that the language does not fully achieve its intended policy outcome.

“Senators Tillis and Alsobrooks are seeking to achieve the correct policy goal,” the groups said. They added that the proposal “falls short of that goal.”

The groups urged Congress to refine the language before final approval. They stated, “Congress must get this right.”

In response, Tillis defended the compromise in a statement on X, calling the revision a “substantially improved, consensus-based product.”

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