Circle Shares Jump 16% on Stablecoin Reward Deal, EU MiCA Approval
Circle shares surged 16.1% after senators agreed on CLARITY Act language permitting activity-based stablecoin rewards while banning deposit-like yields. Its French subsidiary won EU MiCA approval to offer USDC and EURC across the EEA, and Circle joined DTCC’s tokenization service set to launch this October.
1. Stablecoin Legislation Breakthrough
Senators Thom Tillis and Angela Alsobrook released CLARITY Act text that bans yield functionally equivalent to bank deposits but allows stablecoin rewards tied to platform activity. This compromise eased regulatory uncertainty for Circle’s USDC reward programs and triggered a market re-rating of its share value.
2. Stock Rally and Market Signals
Circle Internet Group shares jumped 16.1% on the news, breaking above their 200-day moving average for the first time. Technical analysts noted mixed shorter-term signals but called the stock’s move into new territory a sign of renewed institutional interest ahead of Circle’s May 11 earnings report.
3. EU MiCA License Secured
Circle’s French subsidiary obtained Autorité des marchés financiers approval under the EU’s MiCA framework, enabling custody and transfer services for USDC and EURC across all EEA member states. This makes Circle the largest regulated e-money token issuer in the European Union.
4. Participation in DTCC Tokenization Service
Circle was named among over 50 firms in DTCC’s industry working group for its tokenized securities trading service, set to begin limited production in July and full launch in October. The initiative will tokenize Russell 1000 constituents, major ETFs and U.S. Treasuries, bridging TradFi and DeFi liquidity pools.