A rally in crypto-related stocks occurred on Monday, driven by Circle and Coinbase, as progress in US digital asset legislation and bitcoin surpassing $80,000 boosted sector sentiment. Circle, the issuer of the USDC stablecoin, saw an 18% increase, while US-focused crypto exchange Coinbase rose by about 7%. BitGo, a digital asset infrastructure firm, climbed roughly 10%. Other gainers included Strategy, the largest corporate bitcoin holder, crypto-friendly digital broker Robinhood, and Ethereum treasury firm Bitmine, all of which increased by 3%-4%, reflecting a broad market upswing.
The move was fueled by bitcoin reaching its strongest level since late January, providing a boost to the broader crypto sector. The Digital Asset Market Clarity Act, a key piece of US legislation regulating crypto markets, is moving closer to passage, with a newly released compromise addressing the contentious issue of stablecoin yields.
This development has increased investor optimism, with the odds of passage rising to 64% on the prediction platform Polymarket. As a result, equity markets are beginning to price in potential winners, with Circle widely seen as a beneficiary of clearer rules, particularly if stablecoins are formally positioned as payment tools rather than yield-bearing assets.