Crypto Stocks Gain Over 15% on Renewed Legislative Hopes
Crypto-related equities experienced a significant rally on Wednesday, driven by renewed optimism for a clear U.S. regulatory framework. Crypto exchange Coinbase [COIN] led the gains, with its stock climbing 15.98%. Other crypto-exposed firms followed suit; MicroStrategy [MSTR], the largest corporate holder of Bitcoin, saw its shares increase by over 12%, while trading platform Robinhood [HOOD] rose more than 9%. The performance of these stocks tracked a sharp upward movement in the underlying digital asset prices.
Trump's 'Clarity Act' Push Lifts Bitcoin Above $73,000
The catalyst for the market's bullish turn was a post on Truth Social late Tuesday from former President Donald Trump. He called for the urgent passage of the 'Clarity Act', a proposed regulatory framework for digital assets, and accused banks of holding the legislation “hostage.” This political endorsement spurred immediate market activity, sending the price of Bitcoin up more than 7% over a 24-hour period to reach $73,284, according to CoinDesk data. The move marked a sharp reversal from an initial slump to $63,000 over the weekend.
Stablecoin Yields Emerge as Central Conflict in Regulation
The push for the 'Clarity Act' highlights a fundamental conflict between the crypto industry and traditional banking. Progress on the legislation previously stalled in January over a draft proposal that included a ban on most “stablecoin rewards.” Crypto firms like Coinbase aim to pay customers a yield for holding stablecoins on their platforms. This potential product directly threatens commercial banks, which rely on low-interest consumer accounts for a cheap source of funding. The outcome of this legislative battle will be critical in shaping the competitive landscape between decentralized finance and traditional financial institutions.
