Circle jumps nearly 20% on Clarity Act compromise that preserves stablecoin rewards
CNBC • • business
Key Points:
- Shares of Circle surged nearly 20% after lawmakers reached a compromise on the CLARITY Act, which preserves stablecoin reward programs under specific conditions.
- The updated bill restricts crypto firms from paying interest-like yields on passive stablecoin deposits, reserving that function for traditional banks, but allows rewards tied to active usage such as trading or staking.
- Coinbase, a major distributor of Circle's USDC stablecoin, also saw a 6.1% gain, while Bitcoin rose over 1% to around $79,000 following a weekend peak above $80,000.
- The legislation is viewed as a win for larger players like Circle and Coinbase but may pressure smaller crypto platforms reliant on high-yield deposit products to attract users.
- Bank of America called the CLARITY Act a net positive for the banking sector, expecting it to reduce regulatory uncertainty and facilitate banks’ engagement with digital asset infrastructure.
