Circle Jumps 20% as CLARITY Act Talks Advance

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Crypto-linked stocks rallied on Monday as investors responded to new momentum behind the U.S. CLARITY Act, with Circle leading the gains after a compromise on stablecoin rewards eased one of the bill’s main sticking points.

Circle shares rose 19.9% to $119.53, while Coinbase gained 6.1% to $202.99 and Robinhood added 3.9% to $76.55. The move came as Bitcoin climbed back above $80,000, adding support for public companies tied to digital assets.

Stablecoin Rewards Compromise Lifts Circle 19.9%

The rally followed reports that Sens. Thom Tillis and Angela Alsobrooks reached a bipartisan compromise on CLARITY Act language covering stablecoin incentives. The revised framework would stop stablecoin issuers and related parties from paying interest or yield simply for holding stablecoins or offering products that resemble bank-deposit interest.

It would still allow rewards tied to actual transaction activity. That point matters for crypto firms because it leaves room for usage-based incentives while addressing bank concerns that stablecoin yield products could pull deposits away from traditional lenders.

Circle gained the most because its business is tied directly to stablecoin adoption. The company issues USDC and earns income from reserves, so the rules around stablecoin use, rewards and distribution matter directly to its growth outlook.

Coinbase and Robinhood Rise as USDC Outlook Improves

Coinbase also climbed as investors took the compromise to mean that some user reward models may still survive, while the risk of a tougher stablecoin framework may have eased. The exchange has a close commercial relationship with Circle and benefits when USDC use grows across trading, payments and on-chain activity.

Robinhood rose with the rest of the group. The move reflected broader investor interest in firms that could benefit from clearer U.S. digital asset rules, especially if legislation gives exchanges, brokers and stablecoin businesses a more defined framework.

The gains came even as broader U.S. indexes were weaker, suggesting the move was specific to crypto-related stocks rather than part of a general market rise. Traders Union reported that the Dow fell 1.13% and the S&P 500 dropped 0.41% while crypto-linked equities outperformed.

Passage Odds Remain Near 40% Despite Senate Progress

The rally does not mean the CLARITY Act is close to becoming law. The bill still needs to move through committee, win Senate backing, survive more negotiation and line up with House priorities.

Analysts still estimate about a 40% chance the bill will pass this year, even after the latest compromise revived it. Banks are also still pushing for tighter language. Their concern is that even activity-based rewards could leave room for crypto platforms to compete with bank deposits through stablecoin incentives.

Crypto Stocks Move as Washington Drives Policy Risk

The stock move shows how closely public crypto companies are now tied to Washington’s legislative calendar.

For Circle, the key issue is whether stablecoin rules support growth in USDC payments, trading and on-chain settlement without opening the door to products regulators may view as shadow banking. For Coinbase and Robinhood, the broader question is whether the CLARITY Act can create a clearer path for exchanges, token markets and digital asset services.

The market’s reaction was clear. Investors are treating legislative progress as something that can move crypto stocks in a meaningful way. If the bill continues to advance, the rally could continue. If talks stall again, Monday’s gains may not last.