Cryptocurrency stocks pushed higher for the second day as new progress in Congress lifted market confidence. Circle Internet Group (CRCL) and Coinbase (COIN) led the move as traders reacted to fresh stablecoin laws. The rally followed movement on the CLARITY Act, which could set new rules for digital assets in the U.S. Lawmakers also reached a fresh stablecoin deal, giving the sector added support. As a result, the latest policy progress is driving stronger demand for crypto stocks.
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Crypto Stocks Extend Rally as Stablecoin Law Moves Forward
The price of CRCL rose again after its strong jump the day before, extending gains as market hype continued. Circle shares were up about 2.6% in pre-market trading after rising nearly 20% in the prior session.
Meanwhile, Coinbase shares also gained about 3.6% in pre-market trading after climbing more than 6% a day earlier. Both stocks extended their rally as traders reacted to fresh progress on stablecoin rules in Congress. Circle remained the stronger mover as markets priced in the impact of the new bill.
Notably, U.S. lawmakers finally reached a stablecoin deal under the CLARITY Act after months of negotiations and disputes. The market had reacted quickly as the bill could reduce legal uncertainty for crypto firms.
According to reports, the new CLARITY Act sets clear rules for digital assets and stablecoins in the U.S. It also gives the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) clearer authority over crypto markets. A Senate review is also scheduled later this month.
The main issue that delayed the bill was the discussion of stablecoin rewards and yield. While banks pushed for tighter limits, crypto firms argued that rewards are needed to keep users engaged. The final bill now blocks yield on stablecoin deposits but allows rewards tied to trading, use, and staking.
Coinbase Chief Policy Officer Faryar Shirzad said on X that the deal protects “the ability for Americans to earn rewards” through crypto.
Circle and Coinbase Gain From Clearer Stablecoin Rules
Circle and Coinbase play major roles in the stablecoin market. Circle operates USDC (USDC-USD), one of the largest dollar-backed stablecoins. On the other hand, Coinbase helps trade USDC and supports its use across its platform.
With clearer rules from the CLARITY Act, regulatory risks for the crypto firms could be reduced. Stronger adoption of stablecoins also supports higher trading and payment activity. This connection helped push both firms’ shares higher as investors priced in stronger demand.
Notably, U.S. President Donald Trump has made crypto reform a key policy focus in his second term. Stablecoin rules have become clearer under the current administration. However, critics have raised concerns about conflicts tied to crypto-related interests linked to Trump and his family. Still, a clearer policy direction has improved sentiment across the crypto market.
Is Circle a Good Stock to Buy?
Analysts tracked on TipRanks rate Circle Internet Group (CRCL) as a Moderate Buy based on the current consensus. The current projected average price target for the stock is $138.50, implying a roughly 20.37% upside from current levels. Similarly, Coinbase Global (COIN) is rated a Moderate Buy based on a consensus rating from 17 Wall Street analysts. The stock has been forecasted to reach an average price target of $260.60, suggesting a 32.93% upside. For anyone interested in tracking these stocks’ ratings, price targets, and stock performance, visit the TipRanks Stocks Comparison Center.
