A significant rally was observed in crypto-related stocks on Monday, driven by the progress made in US digital asset legislation and the surge of bitcoin beyond the $80,000 mark. Circle, the issuer of the USDC stablecoin, saw its stock price jump by 18%, while Coinbase, a US-focused crypto exchange, experienced a 7% increase.
Other notable gainers included BitGo, a digital asset infrastructure firm, which rose by approximately 10%, as well as Strategy, Robinhood, and Bitmine, which saw gains of 3-4%. The upward trend was further 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 recent compromise on the Digital Asset Market Clarity Act, a key piece of US legislation regulating crypto markets, has also contributed to the optimism among investors.
The proposed compromise 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 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 being widely seen as a potential beneficiary of clearer rules.