Crypto Stocks Rally on CLARITY Act Compromise

Crypto-related stocks rallied sharply on May 4, 2026, led by stablecoin issuer Circle Internet Group, whose shares surged as much as 18 percent, while Coinbase Global gained around 7 percent. The advances came amid a bipartisan compromise on the Digital Asset Market Clarity Act, a key U.S. bill aimed at establishing rules for digital assets, and as bitcoin climbed above $80,000 for the first time since January 2026.

The compromise, negotiated by Senators Thom Tillis and Angela Alsobrooks, resolves a months-long dispute over stablecoin yields. It prohibits issuers from offering interest-like returns on idle balances but permits rewards linked to user activity, such as transactions or trading. Circle Chief Strategy Officer Dante Disparte endorsed the deal, stating, "Today's compromise on stablecoin yield marks meaningful progress in the CLARITY Act negotiations." The text paves the way for a Senate Banking Committee markup as early as the week of May 11, with prediction markets like Polymarket showing odds of the bill becoming law in 2026 rising to 64 percent.

Bitcoin's surge past $80,000 was fueled by institutional demand and a short squeeze, further lifting sentiment across...