TradingKey - President Trump publicly supports the Clarity Act, driving a broad rally in crypto stocks.

On Wednesday Eastern Time, the three major U.S. stock indices closed higher across the board, and cryptocurrency-related stocks also saw a rare broad rally. Among them, cryptocurrency exchange Coinbase ( COIN) surged nearly 15%, mining firm Hut 8 Corp (HUT) rose over 14%, Bitcoin proxy Strategy (MSTR) gained over 10%, and the leading stablecoin stock Circle (CRCL) continued its climb by more than 5%.

Coinbase stock price chart, Source: TradingView

The strength in crypto stocks this time was driven by President Trump's call for the swift passage of the Clarity Act, an approval that represents a major catalyst long-awaited by the crypto market. However, opposition from Coinbase and the banking sector has delayed the passage of the act.

In February this year, U.S. Treasury Secretary Scott Bessent publicly criticized Coinbase for its opposition to the Clarity Act, labeling it an intransigent participant. On March 2, Trump also published a post attacking the banking industry, claiming they were "hijacking" the Clarity Act due to their opposition to stablecoin yields.

The Clarity Act primarily aims to resolve cryptocurrency regulatory issues, including which tokens are commodities, which are securities, and which fall under the jurisdiction of the SEC versus the CFTC. The act is crucial for the U.S. to achieve its goal of becoming a global cryptocurrency hub. Treasury Secretary Bessent once noted that "without the passage of the Clarity Act, the crypto industry will be unable to move forward in the United States."

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