The crypto sector experienced a significant rally on Monday, driven by Circle and Coinbase, as progress on US digital asset legislation and bitcoin's breach of the $80,000 mark lifted market sentiment. Circle, the issuer of the USDC stablecoin, saw an 18% increase, while Coinbase, a US-focused crypto exchange, rose by approximately 7%. BitGo, a digital asset infrastructure firm, climbed around 10%.
Other notable gainers included Strategy, the largest corporate bitcoin holder, Robinhood, and Bitmine, with increases ranging from 3% to 4%. The rally was fueled by bitcoin's push above $80,000, reaching its highest level since late January, and providing a boost to the broader crypto sector.
The move was also driven by signs that the Digital Asset Market Clarity Act, a key piece of US legislation regulating crypto markets, is moving closer to passage. A newly released compromise would prohibit stablecoin issuers from offering yield on idle balances while allowing rewards tied to usage and transaction activity. This development addresses one of the most contentious aspects of the bill and aligns with earlier discussions in Washington.
According to Markus Thielen, founder of 10x Research, the latest compromise removes one of the final obstacles for the legislation, and lawmakers are expected to move toward a formal markup, potentially as soon as this week. The odds of passage on the prediction platform Polymarket have risen to 64%, reflecting growing confidence that the bill will advance.
As a result, equity markets are beginning to price in potential winners, with Circle, as a regulated stablecoin issuer, widely seen as a potential beneficiary of clearer rules.