The cryptocurrency market experienced a significant rally on Monday, driven by Circle and Coinbase, as the progress of U.S. digital asset legislation and bitcoin's rise above $80,000 boosted sector sentiment. Circle, the issuer of the USDC stablecoin, saw its stock jump 18%, while Coinbase rose approximately 7%.
Other notable gainers included BitGo, Strategy, Robinhood, and Bitmine, with increases ranging from 3% to 10%. The upward momentum was fueled by bitcoin's push above $80,000, reaching its highest level since late January, and the CoinDesk 20 Index's 1.2% gain. Furthermore, the recent compromise on the Digital Asset Market Clarity Act, which prohibits stablecoin issuers from offering yield on idle balances, has addressed a major obstacle to the bill's passage. According to Markus Thielen, founder of 10x Research, this clarification brings the legislation closer to being enacted, with equity markets now pricing in potential winners.
As a regulated stablecoin issuer, Circle is expected to benefit from clearer rules, particularly if stablecoins are recognized as payment tools rather than yield-bearing assets. The company's upcoming earnings report, scheduled for next week, is likely to add another layer of momentum to the stock.