Circle and Coinbase Lead Crypto Stock Surge Amid Clarity Act Progress, Bitcoin Surges Past $80,000
The market is beginning to identify potential beneficiaries as a stablecoin yield compromise paves the way for key U.S. digital asset regulation, according to one analyst.
What to know:
— Crypto equities rallied Monday broadly, with Bitcoin surpassing $80,000 fueling sector momentum.
— Stablecoin creator Circle (CRCL) jumped 18% as a stablecoin yield compromise sparks optimism over the passage of crucial crypto legislation.
— Equity markets are starting to identify «potential winners,» with Circle viewed as a likely beneficiary of clearer regulations, 10x Research founder Markus Thielen noted.
Crypto-related equities rallied Monday, driven by Circle (CRCL) and Coinbase (COIN), as U.S. digital asset legislation advances and Bitcoin climbs
Circle, the issuer of the USDC stablecoin, surged 18%, extending recent gains, while U.S.-focused crypto exchange Coinbase rose approximately 7%. BitGo (BTGO), a digital asset infrastructure provider offering custody and stablecoin services, climbed roughly 10%.
Strategy (MSTR), the largest corporate Bitcoin holder, crypto-friendly digital broker Robinhood (HOOD), and Ethereum (ETH) treasury firm Bitmine (BMNR) also gained 3%-4%, highlighting the broad-market advance.
The move coincided with Bitcoin’s climb
Further fueling investor optimism were indications that the long-debated Digital Asset Market Clarity Act, a pivotal piece of U.S. legislation to regulate crypto markets, is nearing passage.
A recently released compromise would bar stablecoin issuers from offering yield on idle balances, while still permitting rewards linked to usage and transaction activity, according to a Friday text. This approach tackles one of the bill’s most contentious aspects and aligns with earlier discussions in Washington.
Clarity Act Progress
This clarification seems to be a critical moment bringing the bill closer to passage, according to Markus Thielen, founder of 10x Research.
«The latest compromise removes one of the final obstacles for the legislation,» Thielen said in a Telegram message. With the stablecoin yield issue resolved, lawmakers are expected to move toward a formal markup, potentially as soon as this week, he added.
Odds of passage on the prediction platform Polymarket have risen to 64%, reflecting growing confidence that the bill will advance.
With that, «equity markets are beginning to price in potential winners,» Thielen said.
Circle, as a regulated stablecoin issuer, is widely seen as a potential beneficiary of clearer rules, particularly if stablecoins are formally positioned as payment tools rather than yield-bearing assets, he said.
The firm’s upcoming earnings, due next week, adds another layer of momentum for the stock, Thielen noted.
After releasing last quarter’s report in February, Circle’s shares surged around 100% in the following weeks, and investors may have started to position for further gains ahead of earnings.