Circle Internet Group’s initial public offering on the New York Stock Exchange, New York City, US, June 5, 2025.
NYSE
Circle shares surged over the weekend after lawmakers reached agreement on a market structure bill known as the Clarity Act, which would have preserved stablecoin reward programs under certain conditions.
On Friday, key language in proposed crypto legislation was updated to ban crypto companies from paying users savings account-like interest or yields on inactive stablecoin deposits — leaving that task up to traditional banks. However, the bill allows rewards in the form of usage-driven incentives that can be tied to activities such as predictable trading, transactions or staking.
stablecoin issuer circle Whereas, closed 19.9% higher coinbaseThe main distributor of Circle K’s USDC stablecoin gained 6.1%. bitgo And Galaxy Digital increased by 10.3% and 3.8% respectively.
Bitcoin rose more than 1% to nearly $79,000 over the weekend after the leading cryptocurrency topped $80,000 for the first time since January.
The earning yield on stablecoins like USDC and others, usually in the form of rewards, has been a major incentive for users to hold coins – similar to the interest earned on cash sitting in a bank account. The revised language is a relative win for Circle and Coinbase. However, this could put pressure on smaller crypto platforms that rely heavily on high-yield deposit products to attract users.
This development also aligns with the broader industry shift away from return-seeking products and services toward the use of crypto in upgrading financial infrastructure.
Most banks have not yet weighed in on the legislation, but Bank of America called it a net win for the sector.
“Across all bank sub-sectors, the Clarity Act’s resolution of the stablecoin yield debate is a net positive,” Bank of America analyst Ibrahim H. Poonawala said in a note on Monday. “This should ease concerns associated with deposit flight, reduce regulatory uncertainty, and allow banks to engage with digital-asset infrastructure on more controlled terms.”
The crypto industry has received a favorable response to the development so far.
Coinbase CEO Brian Armstrong, who has been heavily involved in the discussion around this bill on Capitol Hill and is in strong support of evening out the playing field between crypto companies and banks, posted on X on Monday morning, saying,mark it“
—CNBC’s Michael Bloom contributed reporting.
