Circle Surges 20% as Clarity Act Stablecoin Yield Compromise Advances

Crypto-related stocks closed higher on Monday, led by Circle's 19.89% surge to $119.53, driven by progress on resolving the Clarity Act dispute surrounding stablecoin yields, according to The Block. Bitcoin topped $80,000, trading up 2.12% at $80,020 as of 9:20 p.m. ET Monday, while broader U.S. equities declined amid geopolitical uncertainty.

Stock Rally Details

Circle shares gained 19.89% to close at $119.53 on Monday. The USDC stablecoin issuer's stock has gained 32.4% over the past month and 50.7% year-to-date. Other crypto-related stocks also posted gains: Coinbase Global closed up 6.14% at $202.99, BitGo climbed 10.26% to $11.50, Robinhood added 3.92%, and SOL Strategies jumped 17.83%.

Bitcoin and Broader Market Movement

Bitcoin rose 2.12% to $80,020 as of 9:20 p.m. ET Monday. In contrast, 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 legislative 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."

Banking 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." "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," the bank trade groups said. "It is imperative that Congress get this right."

Senate Response

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