Circle Internet Group Inc (NYSE: CRCL) has seen its stock plunge by over 20% this week due to fears surrounding the proposed Clarity Act, which seeks to ban interest-like yields on stablecoin balances. The draft legislation presents a severe threat to Circle's revenue from its USDC stablecoin, crucial for its continued growth. With shares down approximately 65% from their 52-week high, analysts express concerns about future demand and profitability, amid increasing competition from rivals like Tether.
“$CRCL drops 20.98% on developments surrounding the Clarity Act, a bill that may restrict yield offerings on stablecoins.”
“$CRCL doing the $AAOI 🙏 Once the next confirms $66.50 should be similar.”
“🚨 CLARITY ACT DRAFT: Stablecoin yields that resemble bank deposits would NOT be allowed. $CRCL 🔻-17%”
“$CRCL trade plan this morning @IUTraders Goal was $118 quickly once it stayed heavy $108 seemed reasonable. Blew through all levels $106.xx range has had a decent refresh seller if it can't reclaim that level soon - good chance it dunks into high $90s puke trade soon.”
“BERNSTEIN SAYS CIRCLE $CRCL AND COINBASE $COIN ARE BEST PROXIES FOR STABLECOIN UPSIDE AS AGENTIC MACHINE PAYMENTS EMERGE”
“Here comes the big test after that $106 supply discussed $CRCL”
“Parece que se viene la Clarity Act sin Yield para las stablecoins $CRCL se la pegó 18% En definitiva, plataformas no bancarias (exchanges) no podrán ofrecer interés en stablecoins.”
“Circle ($CRCL), the issuer of USDC stablecoin, saw its stock crash 20%, after reports of a leaked Clarity Act draft that proposes strict limits or outright bans on yields/rewards for holding USDC.”
“Analysts at Singapore-based digital asset solution provider QCP Capital earlier this month attributed the shift to the conflict in Iran pushing people to cryptocurrency assets to move capital across borders. The analysts cited growth in the market cap of Circle Internet Group’s (NYSE:CRCL) USDC stablecoin amid the conflict as a sign of fresh liquidity entering the market.”
“Coinbase and Better Home & Finance Holding Company... said users of its Coinbase One premium subscription can now pledge Bitcoin or Circle Internet Group’s (NYSE:CRCL) USDC stablecoin to access Fannie Mae-backed mortgages.”
“"Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional [down payment]," Coinbase Head of Consumer and Business Products Max Branzburg said.”
“Coinbase and Better Home & Finance plan to accept Circle's USDC stablecoin as collateral for Fannie Mae backed mortgages. The move allows qualifying crypto holders to access home loans without selling USDC holdings. This step brings Circle Internet Group (NYSE:CRCL) further into the core of the US housing finance system.”