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Circle Shares Jumped 20% to $119.53 as CLARITY Act Advanced Following Tillis Deal
On May 4, shares of Circle surged nearly 20% and closed at $119.53 after US Senators Thom Tillis and Angela Alsobrooks reached a bipartisan compromise on the wording of the CLARITY Act regarding stablecoin rewards.
Key Takeaways
- On May 4, Thom Tillis and Angela Alsobrooks reached an agreement to prohibit stablecoin rewards that function like bank interest.
- Shares of Circle (CRCL) jumped nearly 20% to $119.53 as the market reacted positively to the bipartisan update to the CLARITY Act.
- Regulators will now develop a new disclosure framework for Circle and other companies ahead of the Senate’s consideration of the bill in May 2026.
Year-to-Date Gains Reached 50%
Shares of stablecoin issuer Circle (CRCL) rose nearly 20% on May 4, just days after Senators Thom Tillis, a Republican from North Carolina, and Angela Alsobrooks, a Democrat from Maryland, reached a compromise on wording related to stablecoin rewards in the CLARITY Act.
Market data shows that CRCL shares, which closed around $100 on Friday, finished Monday trading at $119.53, representing a 19.89% increase.
The rally continued during overnight trading, with shares gaining another $6.18, or 5.21%, reaching $125.83.
Before Monday’s surge, the stock had climbed from $91.27 amid optimism that the Senate would achieve a bipartisan agreement on the bill’s wording.
Although the shares remain significantly below their March 18 peak of $132.84, the rally pushed Circle’s year-to-date gains to just over 50%.
What the Compromise Includes
As widely reported, the agreement reached by Thom Tillis and Angela Alsobrooks introduces a broad ban on offering stablecoin rewards in a manner that is “economically or functionally equivalent” to interest paid on traditional bank deposits.
The provision is intended to create a clearer distinction between cryptocurrency products and regulated banking services.
The agreed text reportedly instructs federal regulators to develop a new disclosure regime for stablecoins and create a specific list of “permissible reward-related activities.”
Although the compromise is viewed as a significant step forward, banking industry lobbying groups, which opposed provisions allowing income generation from holding stablecoins, released a statement arguing that the solution remains insufficient.
The lobbying groups repeated their argument that allowing stablecoin issuers and cryptocurrency exchanges to indirectly offer what amounts to interest would inevitably lead to the “deposit flight” they have long warned about.
“Openly encouraging passive holding of payment stablecoins for extended periods and at certain account balances would undermine the goals of the direct prohibition (preventing deposit outflows) by tying rewards directly to how much and how long customers hold payment stablecoins in wallets or on exchanges,” the lobbying groups said in a joint statement.
The groups added that they would present lawmakers with proposals in the coming days to strengthen the proposed wording.
However, apparently responding to reports that banking groups were dissatisfied with the latest compromise, Thom Tillis insisted that the proposed language “is a substantially improved product built on consensus.”
He added that the compromise helps move the CLARITY Act forward and signaled that the window for further negotiations had closed.
“[The compromise] helps put us on a bipartisan path toward passing the CLARITY Act, providing the regulatory certainty needed to foster innovation,” Thom Tillis wrote in a post on X.
“Some members of the banking industry may not want any of this to happen, and we respectfully agree to disagree.”
See also: "Bitcoin Bull Strategy Company Released Its Earnings Report!"
