Cryptocurrency-related stocks rallied on Monday, led by Circle (CRCL) and Coinbase (COIN), as U.S. legislation on digital assets and bitcoin advanced. Breaking above $80,000 boosted sentiment across the sector.
Circle, issuer of the USDC stablecoin, rose 18%, extending recent gains, while US-focused cryptocurrency exchange Coinbase rose about 7%. BitGo (BTGO), a digital asset infrastructure company that offers stablecoin and custody services, rose about 10%.
Strategy (MSTR), the largest corporate bitcoin holder, cryptocurrency-friendly digital broker Robinhood (HOOD) and Ethereum (ETH) treasury firm Bitmine (BMNR) were also up 3% to 4%, underscoring the broader market’s advance.
The move came as bitcoin. It surpassed $80,000 during the session, hitting its highest level since late January and providing a tailwind for the broader crypto sector. BTC advanced nearly 2% in the past 24 hours, leading the broader crypto benchmark CoinDesk 20’s 1.2% gain.
Further boosting investor optimism, there were signs that the long-debated Digital Asset Market Clarity Act, a key piece of US legislation to regulate crypto markets, is nearing passage.
A newly released compromise would prohibit stablecoin issuers from offering yield on dormant balances, while allowing rewards tied to usage and transaction activity, according to a text on Friday. The approach addresses one of the most contentious aspects of the bill and aligns with previous discussions in Washington.
Progress of the Clarity Law
That clarification appears to be a pivotal moment that brings the bill closer to passage, according to Markus Thielen, founder of 10x Research.
“The latest compromise removes one of the last obstacles to legislation,” Thielen said in a Telegram message. With the issue of stablecoin performance addressed, lawmakers are expected to move toward a formal margin, potentially as soon as this week, he added.
Passage odds on prediction platform Polymarket have risen to 64%, reflecting growing confidence that the bill will advance.
With this, “stock markets are starting to price in potential winners,” Thielen said.
Circle, as a regulated issuer of stablecoins, is widely seen as a potential beneficiary of clearer rules, particularly if stablecoins are formally positioned as payment tools rather than yield-generating assets, he said.
The company’s upcoming earnings, due next week, add another boost to the stock, Thielen noted.
After releasing its latest quarter report in February, Circle stock rose around 100% in the weeks since, and investors may have begun to position themselves for more gains ahead of earnings.
