Crypto-related stocks rose Monday, led by Circle ( CRCL ) and Coinbase ( COIN ) as progress on U.S. legislation on digital assets and bitcoin breaking above $80,000 lifted sentiment across the sector.
Circle, issuer of the USDC stablecoin, rose 18%, extending recent gains, while US-focused crypto exchange Coinbase rose around 7%. BitGo ( BTGO ), a digital asset infrastructure company that offers escrow and stablecoin services, rose about 10%.
Strategy ( MSTR ), the largest corporate bitcoin holder, crypto-friendly digital broker Robinhood ( HOOD ) and Ethereum ( ETH ) finance company Bitmine ( BMNR ) also rose 3%-4%, underscoring gains in the broader market.
The move came as bitcoin pushed above $80,000 during the session, hitting its strongest level since late January, giving a tailwind to the broader crypto sector. BTC rose nearly 2% over the past 24 hours, leading the broader crypto benchmark CoinDesk 20 Index’s 1.2% gain.
Further increasing investor optimism were signs that the long-debated Digital Asset Market Clarity Act, a key piece of US legislation to regulate crypto markets, is nearing a review.
A newly released compromise would prohibit stablecoin issuers from offering returns on idle balances while still allowing rewards tied to usage and transaction activity, according to a Friday filing. The approach addresses one of the most contentious aspects of the bill and is consistent with past discussions in Washington.
Progress of the Clarity Act
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 hurdles to the legislation,” Thielen said in a Telegram message. With the stablecoin dividend issue fixed, lawmakers are expected to move toward a formal markup, potentially as soon as this week, he added.
Chances of passage on prediction platform Polymarket have risen to 64%, reflecting growing confidence that the bill will progress.
With that, “stock markets are starting to price in potential winners,” Thielen said.
Circle, as a regulated stablecoin issuer, is widely seen as a potential beneficiary of clearer regulations, especially if stablecoins are formally positioned as payment tools rather than yield-bearing assets, he said.
The firm’s upcoming earnings, expected next week, add another layer of momentum to the stock, Thielen noted.
After releasing its last quarterly report in February, Circle’s shares rallied around 100% in the following weeks, and investors may have started positioning themselves for further gains ahead of earnings.
