Crypto-related stocks surged on Monday after lawmakers reached a bipartisan compromise on a key stablecoin provision in the CLARITY Act, a long-stalled U.S. crypto bill.
The bill establishes a regulatory framework for digital commodities—defined as digital assets that rely on a blockchain for their value—and grants the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) authority to regulate cryptocurrencies. The Senate plans to hold a crypto markup later this month.
Stocks Rally on Stablecoin Deal
Shares in Circle Internet Group (CRCL) jumped over 18% in afternoon trading, while Coinbase Global (COIN) surged 7%. Coinbase serves as a distributor for Circle’s USDC stablecoin.
Bipartisan Compromise on Stablecoin Yields
After months of negotiations between banking and crypto lobbies, Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) finalized a deal on Friday to restrict stablecoin yield and rewards. The agreement directs regulators to propose new stablecoin regulations, as first reported by Punchbowl News.
The central issue was whether stablecoin issuers could offer yield-bearing products and rewards, which critics argue could divert consumer deposits from traditional banks. Coinbase and other crypto firms had argued that rewards were necessary to remain competitive.
The finalized language bans crypto companies from paying yields on stablecoin deposits, reserving that for banks, but permits rewards tied to trading, transactions, or staking, according to CNBC.
“In the end, the banks were able to get more restrictions on rewards, but we protected what matters—the ability for Americans to earn rewards based on real usage of crypto platforms and networks.”
Faryar Shirzad, Coinbase chief policy officer, X (formerly Twitter)
“Mark it up.”
Brian Armstrong, Coinbase CEO
Political Context and Criticism
President Donald Trump has prioritized crypto reform during his second term, though critics question his aggressive promotion of crypto-friendly policies and potential conflicts of interest due to his family’s crypto investments.
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