Circle Internet Financial's stock price surged 20% following news of a compromise agreement on cryptocurrency legislation that would preserve stablecoin rewards for holders.

The compromise appears to be related to the Clarity Act, a piece of legislation aimed at providing regulatory clarity for the cryptocurrency industry. Details of the specific provisions in the compromise were not immediately available.

The cryptocurrency industry has been advocating for lawmakers to take action on pending legislation following what sources describe as a breakthrough agreement. Industry participants have been seeking clearer regulatory frameworks to operate within established legal parameters.

Stablecoins are digital currencies designed to maintain stable value relative to a reference asset, typically the U.S. dollar. Circle is the issuer of USD Coin (USDC), one of the largest stablecoins by market capitalization. The preservation of stablecoin rewards in the legislation appears to have been a key concern for the company and its investors.

The stock movement reflects investor optimism about the regulatory environment for cryptocurrency companies and stablecoin operations specifically. Circle has been working to establish itself as a regulated financial services company in the digital asset space.