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Why are crypto stocks surging today? Coinbase, Circle share prices rise up to 18% on these new stablecoin rules
Crypto stocks experienced a surge following the agreement on a stablecoin provision within the CLARITY Act. This bill proposes a regulatory framework for digital assets, granting oversight to both the SEC and the CFTC. Circle Internet Group and Coinbase Global saw significant gains in their stock prices. The compromise, negotiated between bank and crypto lobbies, addresses stablecoin yield and rewards. The finalized language restricts yield on stablecoin deposits from crypto companies, primarily favoring traditional banks. Rewards tied to actual trading and transactions are still permitted by the updated rules. Coinbase executives expressed satisfaction with the outcome, highlighting the protection of user rewards. Stablecoin issuers faced restrictions on offering interest, a point of contention in the debate. The bill's progress signifies a step forward for the crypto industry. Former President Trump is showing support for crypto-friendly initiatives, and this has faced some criticism.
