Circle Surges 20% as Clarity Act Stablecoin Yield Compromise Advances

Crypto-related stocks closed higher on Monday, with Circle leading the rally with a 19.89% surge to $119.53, primarily driven by progress toward resolving the months-long dispute surrounding the Clarity Act, according to The Block. The stock of the USDC stablecoin issuer has gained 32.4% over the past month and 50.7% year-to-date.

Stock Performance

Coinbase Global closed up 6.14% at $202.99 on Monday. BitGo, a crypto infrastructure firm, saw its shares climb 10.26%, closing at $11.50. Robinhood added 3.92%, while SOL Strategies jumped 17.83%.

Bitcoin topped $80,000, trading up 2.12% at $80,020 as of 9:20 p.m. ET Monday.

Broader Market Context

The crypto stock rally occurred as the broader U.S. equities market declined on Monday, with the Dow Jones Industrial Average falling 1.13% and the S&P 500 slipping 0.41% amid geopolitical uncertainty in the Middle East.

Clarity Act Stablecoin Yield Compromise

The crypto stock rally coincided with progress in Washington. On Friday, Sens. Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) finalized a compromise on language governing stablecoin yields, a key sticking point in the debate over the Clarity Act, according to The Block.

The latest provision blocks “covered parties” from paying any form of interest or yield to U.S. customers solely for holding stablecoins, or in any manner “economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.”

Industry Opposition

Banking groups have opposed provisions in a 2025 stablecoin law that bar issuers from paying interest directly but leave room for platforms like Coinbase to offer rewards. They argue such incentives could draw deposits away from traditional banks.

On Monday, major banking trade groups said the proposed fix “falls short.” According to their statement: “Senators Tillis and Alsobrooks are seeking to achieve the correct policy goal — prohibiting the payment of yield and interest on stablecoins; however, the proposed language falls short of that goal. It is imperative that Congress get this right.”

Legislative Response

In response, Sen. Tillis said Monday that the latest version represents a “substantially improved, consensus-based product.” According to Tillis: “Our compromise prohibits stablecoin rewards from resembling interest on bank deposits, our core concern over deposit flight.”