Circle, Coinbase and BitGo All Surge — Here Is What Is Driving the Rally

TLDR

• Circle surged nearly 20% and Coinbase rose 6% as crypto stocks rallied broadly on Monday
• Bitcoin broke above $80,000 for the first time since late January
• Progress on the Digital Asset Market Clarity Act fueled investor optimism
• A stablecoin yield compromise between two senators removed a key legislative obstacle
• Polymarket odds of the Clarity Act passing rose to 64%

Circle, the issuer of the USDC stablecoin, led a broad rally in crypto-related stocks on Monday. Its shares climbed 19.89% to close at $119.53, bringing its year-to-date gain to over 50%.

Circle Internet Group, CRCL

Coinbase closed up 6.14% at $202.99. BitGo, a crypto infrastructure firm, rose 10.26%. Robinhood added nearly 4%, and SOL Strategies jumped over 17%.

Bitcoin crossed the $80,000 mark during Monday’s session, trading at around $80,020 as of 9:20 p.m. ET. That is its strongest level since late January. The broader CoinDesk 20 Index gained 1.2%.

The crypto gains came as U.S. equity markets moved in the opposite direction. The Dow Jones fell 1.13% and the S&P 500 slipped 0.41%, weighed down by geopolitical uncertainty in the Middle East.

The main driver behind the crypto stock rally was progress on the Digital Asset Market Clarity Act in Washington. The bill aims to create a clear regulatory framework for digital asset markets in the United States.

Stablecoin Yield Compromise

On Friday, Senators Angela Alsobrooks of Maryland and Thom Tillis of North Carolina finalized compromise language around stablecoin yields. This had been one of the most debated parts of the bill.

The new language blocks “covered parties” from paying any form of interest or yield to U.S. customers solely for holding stablecoins. It also bans payments that are functionally similar to interest on a bank deposit.

However, the compromise still allows rewards tied to usage and transaction activity. This distinction is central to the debate.

Banking trade groups pushed back on Monday. They said the compromise “falls short” of its goal and called on Congress to close what they see as loopholes.

Senator Tillis responded by calling the latest version a “substantially improved, consensus-based product.” He said it prohibits stablecoin rewards from resembling interest on bank deposits.

What Analysts Are Saying

Markus Thielen, founder of 10x Research, said the compromise removes one of the final obstacles to the bill’s passage. He expects lawmakers to move toward a formal markup as soon as this week.

Polymarket, a prediction platform, now puts the odds of the Clarity Act passing this year at 64%, up from recent levels.

Thielen said equity markets are starting to price in potential winners. He pointed to Circle as a company that could benefit if stablecoins are formally defined as payment tools rather than yield-bearing assets.

Circle is set to report earnings next week. After its last earnings report in February, the stock rose around 100% in the following weeks.

Strategy, the largest corporate bitcoin holder, and Bitmine, an Ethereum treasury firm, each gained between 3% and 4% on Monday.

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