Circle (CRCL), the issuer behind a major stablecoin business, surged nearly 20% on May 4 and closed at $119.53 after U.S. senators reached a bipartisan compromise on stablecoin rewards language in the CLARITY Act. The move signaled growing market optimism that Washington may be getting closer to a clearer framework for the stablecoin sector.
Bipartisan deal lifts sentiment around regulation
The agreement between Senators Thom Tillis and Angela Alsobrooks reportedly bars reward structures that are “economically or functionally equivalent” to interest on traditional bank deposits. The goal is to draw a firmer line between crypto-based products and regulated banking services, a distinction that has been central to the policy debate around payment stablecoins.
Market data cited in the report showed Circle closing near $100 the previous Friday before jumping to $119.53 on Monday, a gain of 19.89%. The rally continued in overnight trading, where the stock added another $6.18, or 5.21%, to reach $125.83. Before Monday’s spike, the stock had already climbed from $91.27 on expectations that the Senate was nearing bipartisan agreement on the bill’s wording. While still below its March 18 high of $132.84, Circle’s year-to-date gain had moved to just over 50%.
Disclosure rules and lobbying pressure remain in focus
The compromise text also reportedly calls on federal regulators to develop a new disclosure regime for stablecoins and to create a specific list of permitted rewards activities. That suggests policymakers are not only trying to block bank-like yield features, but also to define what kinds of incentives may still be allowed before Senate consideration expected in May 2026.
Banking industry lobbying groups, however, said the amendment still falls short. They argued that if stablecoin issuers or exchanges can indirectly offer incentives tied to balances or holding periods, the result could still be the kind of deposit migration they have long warned about. Tillis pushed back, describing the language as a materially improved, consensus-based outcome that could help move the CLARITY Act forward and provide the regulatory certainty needed for innovation. For investors, Circle’s sharp rally underscored how strongly crypto equity valuations are responding to signs of legislative clarity.