Circle Stock Surges After Clarity Act Passes; Coinbase Acquires USDH for Hyperliquid Shift
Circle shares soared after the Senate approved the long-delayed Clarity Act, potentially establishing clearer federal oversight for stablecoin issuers. Coinbase will acquire USDH brand assets and integrate stablecoin operations in Hyperliquid’s AQAv2 framework, positioning USDC as the primary quote asset on a protocol with billions of dollars in liquidity.
1. Senate Approves Clarity Act
On May 14, the Senate voted to pass the Clarity Act, a bill designed to provide federal regulatory guidelines for stablecoin issuers. The legislation clarifies reserve requirements and oversight responsibilities, potentially reducing legal uncertainties for companies like Circle and paving the way for broader market confidence in USDC.
2. Coinbase Acquires USDH Brand Assets
Native Markets has agreed to sell USDH brand assets to Coinbase while remaining an independent entity. Under the deal, Coinbase becomes the official USDC treasury deployer for Hyperliquid’s AQAv2, inheriting the USDH infrastructure and aligning stablecoin issuance with U.S. Treasury-backed reserves.
3. USDC Becomes Primary Quote Asset on Hyperliquid
The transition replaces USDH with USDC as Hyperliquid’s dominant quote asset, managing billions in liquidity across decentralized perpetuals trading. Under AQAv2, reserve yield generated from Hyperliquid’s USDC balances will be shared with the protocol, enhancing community incentives and potentially increasing on-chain USDC demand.