Circle jumps 20% on Clarity Act compromise that preserves stablecoin rewards
Circle Internet Group’s Initial Public Offering on the New York Stock Exchange in New York City, USA, June 5, 2025.
New York Stock Exchange
Circle’s shares rose after lawmakers reached consensus over the weekend on a market structure bill known as the CLARITY Act, which protects stablecoin rewards programs under certain conditions.
On Friday, key language in proposed crypto legislation was updated to restrict crypto companies from paying users savings account-like interest or returns on passive stablecoin deposits, leaving that function to traditional banks. However, the bill allows rewards as usage-based incentives that can be attributed to activities such as trading, transaction or staking, as expected.
Stablecoin issuer Apartment increased by 20 percent coinbaseThe master distributor of Circle’s USDC stablecoin gained more than 7%. BitGo And Galaxy Digital increased by 10% and 4% respectively.
bitcoin It rose 2% to nearly $80,000 after the flagship cryptocurrency surpassed that level over the weekend for the first time since January.
Earning returns on stablecoins like USDC and others, often in the form of rewards, has been a significant incentive for users to hold the coins, similar to the interest earned on cash 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 have turned heavily to high-yield deposit products to attract users.
This development is also in line with a broader industry shift away from products and services seeking returns and towards using crypto to improve financial infrastructure.
Most banks have yet to weigh in on the legislation, but Bank of America called it a net win for the industry.
“Across banking subsectors, the CLARITY Act’s resolution of the stablecoin yield debate is a net positive,” Bank of America analyst Ebrahim H. Poonawala said in a note Monday. “It should alleviate concerns related to deposit flight, reduce regulatory uncertainty and allow banks to interact with digital asset infrastructure on more controlled terms.”
The crypto industry has so far responded positively to this development.
Coinbase CEO Brian Armstrong, who has been heavily involved in discussions about this bill on Capitol Hill and has strongly supported leveling the playing field between crypto companies and banks, said on X on Monday morning:mark“
—CNBC’s Michael Bloom contributed reporting
