Crypto Stocks Rally as Clarity Act Nears Passage, Bitcoin Surges

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Markets

What to know:

  • Crypto stocks rose on Monday as bitcoin pierced the stubborn barrier of $80,000, a cold metal milestone that somehow warms the souls of traders who forgot to eat.
  • Circle (CRCL) roared up 18%, for a moment the stablecoin issuer wearing optimism like a hat that fits just right, as a compromise about stablecoin yield stirs hopes of passing the crypto legislation.
  • Equity markets began to pick out “potential winners,” with Circle seen as a beneficiary of clearer rules, 10x Research founder Markus Thielen said.

Crypto-related stocks rallied Monday, led by Circle (CRCL) and Coinbase (COIN), as the politics of digital assets coughs and sputters forward and bitcoin, stubborn and unyielding, climbs above the $80,000 mark, giving a sort of caffeinated zeal to the sector.

Circle, issuer of the USDC stablecoin, surged 18%, extending recent gains, while U.S.-focused crypto exchange Coinbase rose about 7%. BitGo (BTGO), a digital asset infrastructure firm offering custody and stablecoin services, climbed roughly 10%.

Strategy (MSTR), the largest corporate bitcoin holder, crypto-friendly digital broker Robinhood (HOOD) and Ethereum treasury firm Bitmine (BMNR) were also up 3%-4%, a chorus of numbers marching across the trading floor like disciplined soldiers in a parade that never ends.

The move came as bitcoin pushed above $80,000 during the session, reaching its strongest level since late January and providing a tailwind for the broader crypto sector. BTC advanced nearly 2% over the past 24 hours, leading the broader crypto benchmark CoinDesk 20 Index’s 1.2% gain, as if the market needed a louder drum to march to.

Further boosting investor optimism were signs that the long-debated Digital Asset Market Clarity Act, a key piece of U.S. legislation to regulate crypto markets, is moving closer to passage.

A newly released compromise would prohibit stablecoin issuers from offering yield on idle balances, while still allowing rewards tied to usage and transaction activity, according to a Friday text. The approach addresses one of the most contentious aspects of the bill and aligns with earlier discussions in Washington.

Clarity Act progress

That clarification appears to be a turning of the wheel, a moment when the bill stops seeking virtue and starts seeking signature, according to Markus Thielen, founder of 10x Research.

“The latest compromise removes one of the final obstacles for the legislation,” said Thielen in a Telegram message. With the stablecoin yield issue addressed, lawmakers are expected to move toward a formal markup, potentially as soon as this week, he added.

Odds of passage on the prediction platform Polymarket have risen to 64%, reflecting growing confidence that the bill will advance.

With that, “equity markets are beginning to price in potential winners,” Thielen said, as if the market were a weathered oracle squinting at a cloudy horizon.

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-bearing assets, he said, a phrase that sounds noble enough to soothe a restless crowd.

The firm’s upcoming earnings, due next week, adds another layer of momentum for the stock, Thielen noted, a reminder that even the most solemn markets crave the spark of quarterly numbers to pretend they care about something deeper than profit.

After releasing last quarter’s report in February, Circle’s shares surged around 100% in the following weeks, and investors may have started to position for further gains ahead of earnings, as if chasing a mirage that keeps moving just beyond the edge of the sunlit screen.

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2026-05-04 20:33