The crypto sector experienced a significant boost on Monday, driven by Circle and Coinbase, as progress on US digital asset legislation and bitcoin's surge past $80,000 lifted market sentiment. Circle, the issuer of the USDC stablecoin, saw its stock price increase by 18%, extending its recent gains, while Coinbase, a US-focused crypto exchange, rose by approximately 7%.
Other notable gainers included BitGo, a digital asset infrastructure firm, which climbed around 10%, and corporations such as Strategy, Robinhood, and Bitmine, which saw increases of 3-4%. The rally was fueled by bitcoin's push above $80,000, its strongest level since late January, and the broader crypto market's 1.2% gain. Furthermore, the recent compromise on the Digital Asset Market Clarity Act, which would regulate crypto markets, has addressed a major point of contention by prohibiting 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, with lawmakers expected to move toward a formal markup soon.
The odds of the bill's passage have risen to 64% on the prediction platform Polymarket, reflecting growing confidence in its advancement. As a result, 'equity markets are beginning to price in potential winners,' Thielen noted, with Circle, as a regulated stablecoin issuer, poised to benefit from clearer rules, particularly if stablecoins are formally recognized as payment tools rather than yield-bearing assets. The firm's upcoming earnings, scheduled for next week, are expected to add another layer of momentum for the stock.