economy
Circle jumps nearly 20% on Clarity Act compromise that preserves stablecoin rewards
Lawmakers over the weekend reached a compromise on the market structure bill known as the CLARITY Act that keeps stablecoin reward programs intact.
TL;DR
- Shares of Circle surged 19.9% following a compromise on the CLARITY Act, which preserves stablecoin reward programs under certain conditions.
- The bill restricts crypto companies from offering savings account-like interest on passive stablecoin deposits, leaving this to traditional banks.
- Usage-driven incentives, such as those tied to trading or staking, are permitted.
- Coinbase, BitGo, and Galaxy Digital also saw share price increases.
- Bitcoin rose over 1% after previously topping $80,000.
- Bank of America analyst Ebrahim H. Poonawala called the resolution a net positive for the banking sector, reducing regulatory uncertainty.
- Coinbase CEO Brian Armstrong expressed support for the bill's outcome.