Catenaa, Tuesday, May 12, 2026- Crypto related stocks climbed sharply Monday as investors positioned ahead of Thursday’s Senate Banking Committee hearing on the Clarity Act, a major US crypto market structure bill that could reshape digital asset regulation.
Stablecoin issuer Circle led gains after reporting stronger than expected quarterly earnings and rapid USDC growth, while Coinbase, MARA Holdings, Riot Platforms and other crypto linked firms also advanced. Bitcoin traded near $82,000 during the session as traders monitored both legislative developments in Washington and expanding institutional activity across crypto infrastructure markets.
Circle Internet posted quarterly earnings of 21 cents per share, beating analyst expectations of 19 cents. Revenue rose about 20% year over year to $694 million, although slightly below Wall Street estimates.
The company reported strong growth in reserve income and transaction activity tied to USDC, its dollar backed stablecoin. USDC circulation increased 28% to $77 billion by the end of the quarter. On chain transaction volume surged 263% to $21.5 trillion.
Circle said USDC represented 28% of the global stablecoin market and accounted for 63% of stablecoin transaction volume during the quarter.
The company also announced a $222 million presale for Arc, a new institutional blockchain network. Investors included BlackRock, ARK Invest, Apollo Funds and Intercontinental Exchange. The funding round placed Arc’s network valuation at $3 billion.
Circle shares surged roughly 16% Monday and remain up more than 60% this year.
The market rally reflects growing investor expectations that Congress could move closer to establishing long awaited crypto regulations. The Senate Banking Committee is scheduled to hold its delayed markup hearing Thursday on the Clarity Act after months of negotiations involving lawmakers, banks and crypto firms.
The proposed legislation would define oversight responsibilities between federal agencies while establishing formal rules for digital asset markets and stablecoins.
Recent compromise discussions between Senators Thom Tillis and Angela Alsobrooks focused heavily on stablecoin rewards, one of the most contested sections of the bill. Banking groups continue arguing the language may still allow crypto firms to offer yield like incentives that compete with traditional deposits.
Despite the opposition, crypto investors appear increasingly optimistic that some form of federal framework could emerge this year. Analysts say regulatory clarity could unlock broader institutional participation across digital asset markets.
Bitcoin miners and infrastructure companies also continue shifting toward AI and data center businesses as they diversify revenue following the latest bitcoin halving cycle.
Market analysts said Circle’s earnings strengthened confidence in stablecoin adoption as blockchain based payment systems continue expanding globally. Researchers tracking digital asset infrastructure said rising USDC transaction volumes suggest institutional usage is accelerating beyond retail trading activity.
Investors also responded positively to broader crypto stock momentum. Coinbase rose nearly 8%, while Bit Digital gained more than 19%. Riot Platforms and MARA Holdings both climbed over 6%.
Not all crypto firms participated in the rally. IREN shares dropped nearly 10% after the company announced plans to raise $2 billion through senior convertible notes due in 2033. The company said proceeds would support corporate operations and capped call transactions tied to institutional buyers.
Keel Infrastructure, formerly known as Bitfarms, initially fell after reporting wider losses but later reversed higher. The company recently completed a multi year restructuring focused on AI and high performance computing infrastructure in North America.
Thursday’s Senate hearing now stands as one of the most closely watched crypto policy events of the year. Investors are betting the Clarity Act could eventually reduce regulatory uncertainty that has weighed on the industry since the collapse of major crypto firms in 2022.
At the same time, disputes between banks and crypto companies over stablecoin rewards continue threatening bipartisan support for the legislation. Lawmakers still face negotiations between Senate committees before any bill reaches a final vote.
For markets, the combination of rising bitcoin prices, institutional stablecoin growth and expectations for federal regulation is fueling renewed momentum across crypto linked equities.
The US crypto industry has spent several years pushing Congress to establish a federal market framework after regulators relied mainly on enforcement actions following the collapse of FTX and other major firms. Stablecoins became central to the debate because they increasingly function as blockchain based payment tools tied to the US dollar. Companies including Circle and Coinbase argue stablecoins can modernize cross border transactions and digital finance. Traditional banking groups warn that reward bearing stablecoins could draw deposits away from regulated financial institutions. Meanwhile, bitcoin miners have increasingly diversified into AI infrastructure and data centers after the 2024 halving reduced mining rewards. The Clarity Act represents one of the broadest attempts yet to define how digital assets, exchanges and stablecoins operate inside the US financial system.
