The shares of crypto-related companies experienced a significant surge on Monday, with Circle and Coinbase leading the charge, as the advancement of US digital asset legislation and the rise of bitcoin above $80,000 boosted the overall sentiment in the sector. Circle, the issuer of the USDC stablecoin, saw its stock price jump by 18%, while Coinbase, a US-focused crypto exchange, rose by approximately 7%. Other companies, including BitGo, a digital asset infrastructure firm, Strategy, the largest corporate holder of bitcoin, Robinhood, a crypto-friendly digital broker, and Bitmine, an Ethereum treasury firm, also saw their stock prices increase by 3-10%.
The upward trend was further fueled by bitcoin's push above $80,000, reaching its highest level since late January, and the progress made on the Digital Asset Market Clarity Act, a crucial piece of US legislation aimed at regulating crypto markets. A recently released compromise on stablecoin yields has addressed one of the most contentious aspects of the bill, bringing it closer to passage.
According to Markus Thielen, the founder of 10x Research, the clarification is a pivotal moment that removes one of the final obstacles for the legislation, and lawmakers are expected to move forward with a formal markup soon. As a result, equity markets are beginning to price in potential winners, with Circle being widely seen as a potential beneficiary of clearer rules.