Crypto Stocks Skyrocket on CLARITY Act Optimism and Treasury Liquidity News

Crypto stocks surged on Wednesday as optimism around the CLARITY Act and Treasury liquidity news lifted Strategy Inc. (NASDAQ:MSTR) and Coinbase (NASDAQ:COIN) sharply higher.

Clear Street analyst Owen Lau attributes the move to two factors: investors rotating out of AI stocks into crypto-adjacent equities, and fresh confidence in the CLARITY Act's passage in September.

The macro backdrop added fuel as the U.S. Treasury announced it would double its long-term bond buyback operations starting September 9, knocking yields lower and sending Bitcoin (BTC) up 6%, Ethereum (ETH) up 10%, Solana (SOL) up 7%, and XRP up 8%.

Bitmine (NASDAQ:BMNR) and Bullish (NYSE:BLSH) also rose by over 13% on the day, while Circle (NYSE:CRCL) climbed nearly 12%.