New York, January 15, 2026, 14:28 EST — Regular session
- Circle shares dropped roughly 4.5% during afternoon trading amid a pullback in crypto-linked stocks
- A U.S. Senate panel delayed progress on a crypto market-structure bill following objections from Coinbase
- Investors are closely eyeing interest-rate cues as the Fed’s January policy meeting approaches
Shares of Circle Internet Group dropped 4.5% to $80.97 Thursday afternoon, after a U.S. Senate committee delayed discussion on a broad crypto market-structure bill.
Coinbase CEO Brian Armstrong criticized the draft, saying it contained “too many issues” and risked “killing” rewards on customers’ stablecoin holdings — tokens pegged to the dollar meant to maintain a stable value. 1
The delay hits Circle hard, caught between the battles over stablecoin regulations and the incentives driving their growth. Investors have treated the stock as a stand-in for whether Washington will approve, restrict, or hinder the USDC business model.
Rates remain a key factor. Circle’s economic model depends largely on the returns from the reserves backing USDC, meaning even slight changes in Federal Reserve outlooks can ripple through the share price.
Earlier this week, senators rolled out a bill aiming to clarify which tokens count as securities versus commodities, while tackling a growing clash over stablecoin “rewards” between banks and crypto companies. Summer Mersinger, CEO of the Blockchain Association, slammed the move, saying, “Their demands to eliminate stablecoin rewards are designed to choke off consumer choice.” 2
Circle’s decision coincided with a wider sell-off in crypto-related stocks. Coinbase slipped roughly 3.2%, while Strategy dropped near 2.5% during afternoon trading.
Tuesday saw Circle shift the narrative toward expansion, unveiling a report positioning stablecoins within a broader “internet financial system” that also encompasses its Arc blockchain and Circle Payments Network. CEO Jeremy Allaire described the system as “going online,” while chief strategy officer Dante Disparte highlighted “a landmark stablecoin law” alongside “increasing regulatory clarity worldwide.” 3
Real-world adoption remains a work in progress. Visa’s head of crypto, Cuy Sheffield, told Reuters on Wednesday that the company’s stablecoin settlement volumes have hit a $4.5 billion annualized run rate. That figure is small compared to Visa’s total payments volume but is “growing significantly month over month.” Visa began a pilot last December allowing some U.S. banks to settle with Visa using Circle’s USDC. Still, Sheffield said there’s no “merchant acceptance at scale” yet. 4
This week, a Circle director filing came through as well. Bradley Horowitz disclosed on a Form 4 an in-kind distribution of 117 Circle shares, connected to an Accel fund payout to its limited partners. The shares are held indirectly via a revocable living trust. 5
The downside scenario is straightforward. Should lawmakers clamp down on stablecoin rewards, intermediaries could lose key levers to draw and keep users. Banks are already pushing back hard against anything resembling interest on token holdings. If yields drop, Circle’s reserve income could shrink, even if the USDC supply remains steady.
The next immediate hurdle is the broader economy. The Federal Reserve is set to meet January 27–28. San Francisco Fed President Mary Daly described policy as being in a “good place,” adding that any adjustments should be “deliberate.” Markets typically interpret that kind of wording as a signal the Fed is comfortable holding steady. 6
