Circle (CRCL), Coinbase (COIN), and BitGo Rally on Senate Stablecoin Breakthrough

Key Takeaways

• Circle’s stock soared almost 20% while Coinbase climbed 6% during Monday’s widespread crypto market rally
• Bitcoin climbed back above the $80,000 threshold for the first time since January’s final days
• Momentum behind the Digital Asset Market Clarity Act sparked renewed confidence among investors
• Two senators reached a breakthrough agreement on stablecoin yield provisions, clearing a major legislative hurdle
• Prediction markets now show 64% probability for the Clarity Act becoming law

Shares of Circle, the company behind the USDC stablecoin, spearheaded a widespread surge across crypto-related equities on Monday. The stock jumped 19.89% to settle at $119.53, pushing its 2025 returns above the 50% threshold.

Circle Internet Group, CRCL

Coinbase finished the trading day higher by 6.14% at $202.99. Digital asset custody provider BitGo climbed 10.26%. Robinhood shares increased nearly 4%, while SOL Strategies experienced a surge exceeding 17%.

Bitcoin pushed through the $80,000 threshold during Monday trading, hovering around $80,020 at 9:20 p.m. ET. This marked its most robust performance since January’s conclusion. Meanwhile, the CoinDesk 20 Index advanced 1.2%.

The cryptocurrency sector’s strength emerged as traditional U.S. stock markets headed in the reverse direction. The Dow Jones declined 1.13% and the S&P 500 dropped 0.41%, pressured by escalating geopolitical tensions across the Middle East.

The primary catalyst propelling the crypto equity rally was legislative advancement of the Digital Asset Market Clarity Act on Capitol Hill. This legislation seeks to establish comprehensive regulatory guidelines for digital asset markets across the United States.

Senators Reach Stablecoin Yield Agreement

Last Friday, Maryland Senator Angela Alsobrooks and North Carolina Senator Thom Tillis reached consensus on compromise text addressing stablecoin yield mechanisms. This provision had represented one of the bill’s most contentious elements.

The revised text prohibits “covered parties” from distributing any interest or yield forms to American customers purely for stablecoin holdings. It additionally restricts payments that functionally replicate interest earned on traditional bank deposits.

Nevertheless, the agreement preserves the ability to offer incentives connected to actual usage and transactional engagement. This differentiation represents the core of the ongoing policy debate.

Banking industry associations voiced opposition on Monday. They characterized the compromise as inadequate for achieving its stated objectives and urged Congress to eliminate perceived regulatory gaps.

Senator Tillis countered by describing the updated version as a “substantially improved, consensus-based product.” He emphasized that it prevents stablecoin reward structures from mirroring traditional banking deposit interest.

Industry Expert Perspectives

Markus Thielen, who founded 10x Research, stated the compromise eliminates among the last remaining barriers to legislative approval. He anticipates lawmakers will proceed toward official markup sessions potentially within days.

Polymarket, a blockchain-based forecasting platform, currently assigns 64% likelihood to the Clarity Act securing passage before year-end, representing an increase from prior estimates.

Thielen noted that equity investors are beginning to factor in prospective beneficiaries. He highlighted Circle as particularly positioned to gain if stablecoins receive formal classification as payment instruments rather than interest-generating products.

Circle plans to announce quarterly earnings next week. Following its previous February earnings disclosure, the company’s stock price roughly doubled throughout subsequent weeks.

Strategy, holding the largest corporate bitcoin reserves, and Bitmine, maintaining an Ethereum-focused treasury, each registered gains ranging from 3% to 4% during Monday’s session.

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