Crypto-related stocks rebounded on Monday, led by Circle (CRCL) and Coinbase (COIN), thanks to progress in U.S. digital asset legislation and Bitcoin. surpassing $80,000 boosted sentiment across the sector.
Circle, issuer of the stablecoin USDC, jumped 18%, extending its recent gains, while Coinbase, the U.S.-focused crypto exchange, rose about 7%. BitGo (BTGO), a digital asset infrastructure company offering custody and stablecoin services, climbed about 10%.
Strategy (MSTR), the largest corporate bitcoin holder, crypto-friendly digital broker Robinhood (HOOD) and Ethereum (ETH) cash company Bitmine (BMNR) also rose 3-4%, highlighting the market-wide advance.
This decision came in the form of bitcoin surpassed $80,000 during the session, reaching its highest level since late January and providing a tailwind to the broader crypto sector. BTC is up nearly 2% in the past 24 hours, leading the broader crypto benchmark CoinDesk 20 index’s 1.2% gain.
Signs that the Digital Asset Market Clarity Act, a key piece of long-debated U.S. legislation to regulate crypto markets, are close to passage have further boosted investor optimism.
A recently released compromise would prohibit stablecoin issuers from offering a yield on inactive balances, while allowing rewards tied to usage and transaction activity, according to a Friday text. The approach addresses one of the most controversial aspects of the bill and aligns with previous discussions in Washington.
Progress on the Clarity Law
This 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. Once the stable yield issue is resolved, lawmakers should move toward a formal increase, potentially as soon as this week, he added.
The odds of success on prediction platform Polymarket stood at 64%, reflecting growing confidence in the bill’s progress.
With that, “equity 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 rules, particularly if stablecoins are formally positioned as payment tools rather than yield-generating assets, he said.
The company’s upcoming results, expected next week, add new momentum to the stock, Thielen noted.
After the latest quarter’s report was released in February, Circle shares jumped about 100% in the following weeks, and investors may have started positioning themselves for further gains ahead of earnings.
