Coinbase, Circle and Bullish Stocks Rally on Clarity Act Optimism

Crypto stocks Coinbase (COIN), Bullish (BLSH) and Circle (CRCL) rallied Wednesday, outperforming much of the digital asset sector as investors reacted to renewed optimism over U.S. crypto regulation and a potential rotation away from artificial intelligence stocks.

COIN and BLSH climbed about 8%, while CRCL gained nearly 10%. Bitcoin (BTC) also strengthened, rising roughly 2% over the previous 24 hours to around $68,725.

Clear Street analyst Owen Lau attributed the gains to two potential catalysts: investors taking profits from the AI trade and growing confidence that the Digital Asset Market Clarity Act could advance in September. A rotation out of high-flying AI stocks may be directing capital toward other market segments, including crypto-related equities.

Regulatory optimism has also increased following comments from key U.S. officials. Speaking Tuesday at the SALT conference in Jackson Hole, Senate Banking Committee Chairman Tim Scott said the crypto market structure bill has a “really good shot” of progressing in September. Scott expressed confidence that the legislation would eventually become law, although questions remain over its timing and final provisions.

The Senate is expected to hold a procedural vote on Sept. 15, potentially determining whether supporters have enough backing to advance the Clarity Act. Lawmakers still need to resolve disagreements involving crypto rewards, decentralized finance and ethics requirements.

Patrick Witt, executive director of the White House Council of Advisors for Digital Assets, also indicated that negotiations are approaching a stage where a broader compromise could emerge. Lawmakers are expected to resume discussions ahead of the September vote.

Democrats, however, have pushed for stronger ethics provisions and could withhold support without an acceptable agreement.

Passage of the Clarity Act could be particularly significant for Coinbase, Bullish and other U.S. crypto companies. The legislation would provide clearer rules governing digital assets and trading platforms, potentially reducing regulatory uncertainty and creating a more durable framework that would be harder for future administrations to reverse.