Aug 20 (Reuters) - Cryptocurrency and blockchain-related stocks surged in premarket trading on Thursday after U.S. President Donald Trump urged Congress to pass legislation establishing clear rules for the digital asset sector, following a White House meeting with industry executives.
Trump, a vocal cryptocurrency advocate who has promised to make the U.S. the "crypto capital of the world," called on lawmakers to pass a "fair version of the Clarity Act," an industry-backed bill stalled in the Senate.
The act, if enacted, would define whether cryptocurrency qualifies as a security or a commodity, clarifying jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission over the sector.
Industry executives and analysts say that without legislation, regulations are vulnerable to shifting political winds and court challenges.
However, many Democrats, and some Republicans, say they would not support a bill without strong language banning political officials, including Trump, from profiting from their own crypto ventures.
President Trump disclosed more than $1.4 billion in earnings from his family's crypto ventures in 2025.
Bitcoin, the world's largest cryptocurrency, rose 3.4% and pushed through resistance levels that had held since early June, moving past the $70,000 mark to highs of about $71,700. Ether gained 3.3%, its highest level in over three months.
The moves mirror the boost the sector received when the GENIUS Act was signed into law in July 2025, establishing a regulatory framework for stablecoins.
Crypto exchange Coinbase Global gained 8.4%, while bitcoin bull Strategy rose 10%. Miners Riot Platforms, MARA Holdings, Hut 8 and Bit Digital rose between 3% and 6%.
Bitcoin mining machine maker Canaan surged 20%, stablecoin issuer Circle gained 8% and retail trading platform Robinhood Markets advanced 5%.
The gains come despite a broader 2026 slump. Bitcoin has lost about 18% so far this year.
(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
