Crypto stocks rose on Monday, led by Circle (CRCL) and Coinbase (COIN), as developments in the U.S. digital asset law and Bitcoin’s rise above $80,000 lifted sentiment across the sector.
Circle, the issuer of the USDC stablecoin, soared 18%, extending recent gains, while U.S.-focused crypto exchange Coinbase rose about 7%. BitGo (BTGO), a digital asset infrastructure company that provides custody and stablecoin services, rose about 10%.
Strategy (MSTR), the largest corporate Bitcoin holder, crypto-friendly digital brokerage Robinhood (HOOD), and Ethereum (ETH) treasury company Bitmine (BMNR) also rose 3-4%, confirming the overall market’s rise.
The move comes as Bitcoin rose above $80,000 during the session, its strongest level since late January, providing a tailwind for the broader crypto sector. BTC has risen nearly 2% in the past 24 hours, leading the broader crypto benchmark CoinDesk 20 Index’s 1.2% rise.
Adding to investor optimism were signs that the long-debated Digital Asset Market Transparency Act, a key piece of U.S. law regulating crypto markets, is nearing passage.
The newly announced compromise would prohibit stablecoin issuers from offering yield on idle balances, but would allow rewards related to usage or trading activity, according to Friday’s document. This approach addresses one of the bill’s most contentious aspects and is consistent with previous discussions in Washington.
Clarity Act progress
According to Markus Thielen, founder of 10x Research, this clarification appears to be a pivotal moment as the bill approaches passage.
“This compromise removes one of the final obstacles to passage,” Thielen said in a Telegram message. With the stablecoin yield issue resolved, lawmakers are expected to move toward a formal price increase as early as this week, he added.
The probability of passage has risen to 64% on prediction platform Polymarket, reflecting growing confidence that the bill will move forward.
In response, “stock markets are starting to price in potential winners,” Thielen said.
He said Circle, a regulated stablecoin issuer, is widely seen as potentially benefiting from clearer rules, especially if stablecoins are formally positioned as payment instruments rather than yield-producing assets.
Thielen noted that the company’s earnings release, expected next week, will add further momentum to the stock.
After releasing its last quarter report in February, Circle’s stock price rose about 100% in the weeks that followed, and investors may have started expecting more gains ahead of the earnings.
