The crypto sector experienced a significant rally on Monday, with Circle and Coinbase leading the charge, as progress on US digital asset legislation and bitcoin's surge past $80,000 boosted market sentiment. Circle, the issuer of the USDC stablecoin, saw its stock rise by 18%, while Coinbase, a US-focused crypto exchange, increased by approximately 7%.
Other notable gainers included BitGo, a digital asset infrastructure firm, which climbed around 10%, and Strategy, the largest corporate bitcoin holder, which rose by 3-4% along with crypto-friendly digital broker Robinhood and Ethereum treasury firm Bitmine. The rally was fueled by bitcoin's push above $80,000, its strongest level since late January, and the CoinDesk 20 Index's 1.2% gain.
The recent compromise on the Digital Asset Market Clarity Act, which would regulate crypto markets, has also contributed to investor optimism. The proposed legislation would prohibit stablecoin issuers from offering yield on idle balances while allowing rewards tied to usage and transaction activity.
According to Markus Thielen, founder of 10x Research, this clarification brings the bill closer to passage and removes one of the final obstacles for the legislation. With the stablecoin yield issue addressed, lawmakers are expected to move toward a formal markup, potentially as soon as this week. The odds of passage have risen to 64% on the prediction platform Polymarket, reflecting growing confidence that the bill will advance.
As a result, equity markets are beginning to price in potential winners, with Circle being widely seen as a potential beneficiary of clearer rules, particularly if stablecoins are formally positioned as payment tools rather than yield-bearing assets.