Crypto-related stocks experienced significant gains on Monday, driven by advancements in U.S. digital asset legislation and a notable rise in bitcoin’s value. Bitcoin surpassed the $80,000 mark, reaching $80,458.48, its highest level since late January, which contributed to positive sentiment across the sector.
Leading the rally was Circle (CRCL), the issuer of the USDC stablecoin, which saw its shares increase by 18%. Coinbase (COIN), a prominent U.S.-based cryptocurrency exchange, rose approximately 7%. Other notable performers included BitGo (BTGO), a digital asset infrastructure firm, which climbed around 10%, and companies such as MicroStrategy (MSTR) and Robinhood (HOOD), which both saw gains of 3% to 4%.
The upward trend in cryptocurrency values coincided with the potential passage of the Digital Asset Market Clarity Act, a significant piece of legislation aimed at regulating the cryptocurrency market. A newly proposed compromise within the bill would prevent stablecoin issuers from providing yield on idle balances while still permitting rewards linked to usage and transaction activity. This adjustment addresses a contentious issue that has long been debated among lawmakers.
Markus Thielen, founder of 10x Research, noted that this latest compromise could be a crucial step toward the bill’s passage. In a message via Telegram, he stated, “The latest compromise removes one of the final obstacles for the legislation.” He further indicated that lawmakers may be poised to move toward a formal markup of the bill as early as this week.
Confidence in the bill’s advancement has increased, with odds on the prediction platform Polymarket rising to 64%. Thielen remarked that equity markets are beginning to factor in potential beneficiaries of the new regulations.
Circle, as a regulated stablecoin issuer, is viewed as a likely beneficiary of clearer regulatory guidelines, especially if stablecoins are officially designated as payment instruments rather than yield-generating assets. The company’s upcoming earnings report, scheduled for next week, adds to the positive momentum surrounding its stock. Following the release of its previous quarterly report in February, Circle’s shares surged nearly 100% in the subsequent weeks, prompting investors to position themselves for further potential gains.
In related news, families holding long-standing judgments against North Korea are attempting to seize 30,765 ETH that has been frozen following a recent exploit, claiming connections between the incident and North Korean hacking groups. A lawyer representing the victims has served a restraining notice to Arbitrum DAO, seeking to block the release of the funds.
- A lawyer representing victims of North Korean terrorism has served Arbitrum DAO with a New York restraining notice, seeking to block the release of 30,765 ETH frozen after the rsETH exploit by claiming it is DPRK-linked property.
- The filing names Arbitrum DAO as a garnishee in three federal enforcement actions.
Crypto stocks, particularly Circle and Coinbase, saw significant gains as Bitcoin surpassed $80,000. Progress on U.S. digital asset legislation, particularly the Digital Asset Market Clarity Act, is contributing to investor optimism.