Summary
- U.S. crypto-related stocks closed broadly higher on expectations for progress in regulation.
- Crypto-related stocks rallied, led by Circle, the issuer of the USDC stablecoin, which rose 19.89%% from the previous session.
- The market sees the direction of stablecoin regulation becoming clearer, easing business uncertainty for related companies and improving investor sentiment.
Forecast Trend Report by Period
U.S. crypto-related stocks closed broadly higher as optimism grew over progress on regulation.
The Block reported on May 4 that Circle, the issuer of the USDC stablecoin, surged 19.89% to close at $119.53. The stock has gained 32.4% over the past month and more than 50% since the start of the year.
Coinbase rose 6.14% to $202.99, while BitGo gained 10.26%, Robinhood added 3.92% and Sol Strategies jumped 17.83%.
Bitcoin climbed about 2% on the day to break above $80,000. Traditional equities were weaker, with the Dow Jones Industrial Average falling 1.13% and the S&P 500 declining 0.41%.
The gains in crypto-linked stocks were tied to progress on the CLARITY Act, a crypto market structure bill under discussion at the White House. The Senate recently reached a compromise on a key sticking point involving rules on interest payments for stablecoins.
The agreement would prohibit paying interest or yield solely for holding stablecoins. Banks, however, are objecting to a framework that would still allow some rewards programs, arguing that it falls short of the regulatory objective.
Sen. Thom Tillis called the compromise a reflection of the central concern over preventing deposit outflows and said it represented substantial progress.
Investors appear to be betting that a clearer regulatory path for stablecoins will reduce business uncertainty for related companies and improve market sentiment.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
