The cryptocurrency sector experienced a significant rally on Monday, with Circle and Coinbase leading the charge, as the progress of US digital asset legislation and bitcoin's breach of the $80,000 threshold boosted market sentiment. Circle, the issuer of the USDC stablecoin, saw its stock soar by 18%, while Coinbase, a US-focused cryptocurrency exchange, rose by approximately 7%. Additionally, BitGo, a digital asset infrastructure firm, climbed around 10%, and other notable gainers included Strategy, Robinhood, and Bitmine, which all saw increases of 3-4%.
The rally was fueled by bitcoin's surge above $80,000, its highest level since late January, and the CoinDesk 20 Index's 1.2% gain. Furthermore, the newly released compromise on the Digital Asset Market Clarity Act, which would regulate cryptocurrency markets, has addressed one of the most contentious aspects of the bill and brought it closer to passage. According to Markus Thielen, founder of 10x Research, the clarification on stablecoin yield is a pivotal moment that removes one of the final obstacles for the legislation, and lawmakers are expected to move towards a formal markup soon. As a result, equity markets are beginning to price in potential winners, with Circle being widely seen as a potential beneficiary of clearer rules.