Why Circle Internet Stock Jumped 17% Today

Key Points

• Circle Internet shares soared on Wednesday as "crypto week" moved forward and the Trump administration put more pressure on the Federal Reserve.

• Circle Internet seems to thrive when interest rates are high, so today's price jump suggests investors may be anticipating more interest rate increases than cuts in the near future.

• 10 stocks we like better than Circle Internet Group ›

Shares of Circle Internet Group (NYSE: CRCL) have been volatile in this so-called "crypto week" on Capitol Hill. For instance, the stock fell 4.6% on Tuesday as lawmakers stumbled over a procedural issue, probably delaying any votes on several cryptocurrency regulation bills.

But Circle's stock soared on Wednesday, gaining 17.1% by 1:25 p.m. ET. The procedural roadblocks may clear up today, perhaps getting the crypto week regulatory actions back on track -- and that's not all.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Crypto drama on Capitol Hill

Beyond the new signs of progress on the pending crypto bills, the Trump administration is facing off against the Federal Reserve. Several news outlets said that Trump wants to fire Fed chairman Jerome Powell, whose careful management of interest-lowering moves doesn't always align with the White House's agenda.

Circle Internet keeps a close eye on the Fed's interest rate adjustments. The company makes money almost exclusively by earning interest on its massive cash reserves, which are backing the constant $1 value of the USDC (CRYPTO: USDC) stablecoin. Lowering the federal interest rate by 1 percentage point would lower Circle's bottom-line earnings by at least $500 million, based on the $44 billion Circle held in reserve for USDC support at the end of 2024.

USDC's market value has risen to $63.3 billion since then, which increases the impact Federal interest rates will have on Circle's financial results. Today's soaring stock price suggests that investors expect turmoil and maybe even higher interest rates if Trump pushes out Powell.

Image source: Getty Images.

What's next?

Trump has denied that he's planning to fire Powell, and the executive branch may not have the authority to remove Federal Reserve officials anyhow. So it remains to be seen how the political pressure might affect Powell's rate adjustments. Today's huge price jump wouldn't make sense without the congressional voting drama amplifying the Fed speculation.

In the best of all worlds, the cryptocurrency market could end this week with a long-awaited regulatory framework. Whether the rules are implemented under Powell or another Fed chair, crypto investors are craving regulatory clarity. As the manager of a leading stablecoin, Circle Internet is a useful bellwether of the political developments around crypto.

Furthermore, Circle just set Aug. 12 as the date for its first financial report as a public company. I can't wait to see the stablecoin issuer's real-world results in black and white.

Should you invest $1,000 in Circle Internet Group right now?

Before you buy stock in Circle Internet Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,308!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.