Circle Internet Group shares climbed nearly 20% on a report that a compromise version of the Digital Asset Market Clarity Act preserved provisions allowing stablecoin issuers to pay rewards to token holders, according to CNBC.

The rally erased weeks of caution on the stock, which had traded sideways through November as investors weighed the risk that the bill moving through the House Financial Services Committee would impose an outright ban on yield-bearing stablecoin distributions.

The revised text narrows the scope of those restrictions while retaining a federal licensing pathway for non-bank issuers.

Why does the rewards clause matter for Circle?

Circle, which completed its initial public offering in June 2025, derives the majority of its revenue from interest earned on the U.S. Treasuries and cash equivalents backing USDC, the second-largest dollar-pegged stablecoin by circulation.

Distribution partners — most prominently Coinbase, which passes through yield on USDC balances held on its exchange — rely on those economics to compensate users for holding the token rather than alternatives such as Tether's USDT.

A prohibition on reward payments would compress a key lever Circle and its partners use to defend market share. Industry executives had argued in congressional testimony that such a ban would accelerate migration of dollar liquidity toward offshore issuers.

What does the legislation do?

The Digital Asset Market Clarity Act, if enacted, would establish the first comprehensive federal market-structure framework for digital assets, allocating jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Earlier drafts drew opposition from the crypto industry over the stablecoin rewards language, prompting the compromise now reflected in the bill. The amendment does not resolve every point of friction.

Open questions include the asset cap below which issuers can operate under a state regulatory regime, the treatment of algorithmic stablecoins, and the interaction between federal preemption and existing state money transmitter rules.

How exposed is Circle to the legislative process?

Circle's sensitivity to the bill reflects how closely the company's equity is tethered to the U.S. regulatory perimeter. The 20% move marks one of the largest single-session reactions for the stock since its June listing.

That sensitivity also illustrates a broader market point. Stablecoin issuers with U.S. banking or treasury relationships benefit from regulatory clarity that locks in their distribution moat, while issuers operating offshore face the prospect of a narrower compliance window.

The rally aligns with public support from Treasury Secretary Scott Bessent, who has framed dollar-backed stablecoins as a tool to extend the greenback's role in cross-border payments — a position that complements industry arguments against yield restrictions.

What happens next?

The revised text heads toward committee markup, with negotiations over final language expected to continue into the early weeks of the legislative calendar. The next major deadline is the committee vote.

That vote will determine whether the rewards compromise survives intact. If the provision is weakened in markup, Circle's stock would likely face renewed pressure. If it holds, the bill would advance toward a floor vote and bring the U.S. closer to a unified digital-asset regulatory regime for the first time.