{"id":2901,"date":"2026-05-06T20:14:37","date_gmt":"2026-05-06T20:14:37","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=2901"},"modified":"2026-05-06T20:14:37","modified_gmt":"2026-05-06T20:14:37","slug":"circle-stock-surges-20-percent-after-lawmakers-reach-stablecoin-agreement","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/05\/06\/circle-stock-surges-20-percent-after-lawmakers-reach-stablecoin-agreement\/","title":{"rendered":"Circle Stock Surges 20 Percent After Lawmakers Reach Stablecoin Agreement"},"content":{"rendered":"\n
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Shares of Circle Internet Group climbed close to 20 percent on Monday after two United States senators revealed a bipartisan agreement aimed at resolving one of the most disputed issues delaying federal crypto legislation. The breakthrough came after months of negotiations but quickly faced strong opposition from the banking sector.<\/p>\n\n\n\n

Lawmakers Advance Stablecoin Proposal Despite Bank Pushback<\/strong><\/p>\n\n\n\n

On May 5, Senator Thom Tillis announced on X that he and Senator Angela Alsobrooks had finalized what he described as a consensus driven proposal following extended discussions with industry participants. He explained that the agreement directly tackles a major concern from banks, which is the risk of deposit outflows.<\/p>\n\n\n\n

According to Tillis, the compromise prevents stablecoin rewards from functioning like interest paid on traditional bank deposits. He also noted that banking representatives were actively involved throughout the negotiation process.<\/p>\n\n\n\n

At the same time, the framework still permits crypto firms to provide alternative forms of customer incentives. This element preserves key aspects of existing crypto business models.<\/p>\n\n\n\n

Despite these adjustments, major banking organizations voiced clear disagreement. In a joint response, groups including the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America acknowledged that lawmakers were pursuing the right objective but argued that the proposal does not go far enough.<\/p>\n\n\n\n

They pointed to research suggesting that stablecoins offering yield could significantly reduce lending activity to consumers, small businesses, and agricultural sectors. The associations also indicated they would present more detailed recommendations to lawmakers soon.<\/p>\n\n\n\n

Tillis and Alsobrooks stood firm on their position, stating that the agreement was final and signaling a respectful but clear disagreement with the banking industry.<\/p>\n\n\n\n

Coinbase Chief Legal Officer Paul Grewal, who previously participated in White House discussions on the issue, reacted on X with a measured tone. He remarked that the banking groups had achieved something rare by helping unite both Republican and Democratic lawmakers around a practical solution.<\/p>\n\n\n\n

Circle Shares Recover Strongly<\/strong><\/p>\n\n\n\n

Financial markets reacted quickly to the announcement. Circle shares closed on May 4 at approximately 120 dollars, rising from about 100 dollars the previous day. The upward momentum continued in after hours trading, where the stock reached around 126 dollars.<\/p>\n\n\n\n

This marks a notable turnaround from late March, when the company\u2019s shares fell roughly 20 percent in a single session after earlier versions of the legislation raised fears of a complete ban on stablecoin yield.<\/p>\n\n\n\n

The current compromise has been received more positively because, while it restricts interest-like payouts, it still allows other reward mechanisms. Analysts have noted that this structure aligns with Circle\u2019s current approach, where the company retains the yield generated from reserves backing its USDC stablecoin instead of distributing it directly to users.#crypto#cryptonewshttps:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Circle Internet Group climbed close to 20 percent on Monday after two United States senators revealed a bipartisan agreement aimed at resolving one of...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2901","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/2901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=2901"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/2901\/revisions"}],"predecessor-version":[{"id":2903,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/2901\/revisions\/2903"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=2901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=2901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=2901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}