US Lawmakers Reach CLARITY Act Compromise Favorable to Crypto Firms

After weeks of negotiation, US lawmakers have finally reached a compromise on the CLARITY Act, a bill aimed at clarifying the regulatory framework for the cryptocurrency market.

The compromise allows crypto firms to offer rewards tied to user activity, such as trading and staking, but prohibits them from paying interest or returns like traditional banks for simply holding stablecoins.

Circle shares rose 16% in response to the news, while Coinbase, a major distributor of Circle's USDC stablecoin, gained over 7%. Other crypto firms, including BitGo and Galaxy Digital, also saw significant gains.