Circle Internet (NYSE:CRCL) shares rallied on Wednesday afternoon, rising roughly 6% after reports emerged that the White House plans to bring together banking and cryptocurrency industry leaders to discuss stalled legislation.
The meeting is slated for Monday and is intended to focus on resolving areas of disagreement between traditional banks and crypto firms. A central item on the agenda will be debate over the ability of cryptocurrency companies to pay interest and rewards on stablecoin holdings, a point of contention highlighted in the reporting. The summit is being organized by the White House's crypto council, and a range of trade associations are expected to attend, according to sources familiar with the matter.
The prospect of a government-led forum to address legislative gridlock on crypto matters coincided with an intraday upgrade of Circle by Mizuho earlier Wednesday, a development that further bolstered investor enthusiasm for the company that issues the USDC stablecoin.
Shares of Coinbase (NASDAQ:COIN) also moved slightly higher following the reports, though the exchange's stock remained down about 0.3% for the trading session.
Stablecoins - digital tokens designed to maintain a peg to traditional currencies such as the U.S. dollar - have become an increasing focus for policymakers as their usage in the broader financial system expands. The planned White House meeting underscores a renewed push by the administration to advance cryptocurrency legislation, according to the reporting. The White House did not immediately respond to requests for comment.
Market participants reacted to the confluence of regulatory attention and the analyst upgrade. For Circle, which issues USDC, the combination of potential regulatory progress and a positive broker note translated into meaningful upward pressure on the stock during the session. For other crypto-related firms, the development produced mixed moves, with some names edging higher while session-level performance remained muted.
What to watch next
- Whether the Monday meeting yields specific proposals or a timetable for moving stalled legislation forward.
- Any follow-up comments or clarifications from the White House or the crypto council about attendees and objectives.
- How market participants price the interplay between regulatory signals and analyst coverage for stablecoin issuers and crypto exchanges.