NEW YORK, May 10, 2026, 12:12 EDT
- Circle Internet Group is set to deliver first-quarter numbers on Monday. Investors are eyeing USDC momentum and the company’s reserve income.
- The Digital Asset Market Clarity Act heads to a U.S. Senate panel on May 14, bringing fresh attention to stablecoin rewards.
- Banks, anxious over losing deposits, are facing off with crypto firms like Coinbase.
With lawmakers in Washington set to consider a crypto-market bill that could influence the way Circle Internet Group and its partners generate revenue from digital dollars, the stablecoin issuer faces earnings on Monday.
The Senate Banking Committee plans to take up H.R.3633, the Digital Asset Market Clarity Act of 2025, in an executive session set for May 14 at 10:30 a.m. in the Dirksen Senate Office Building, according to the committee’s published calendar.
This comes into focus because Circle’s main offering, USDC, is a stablecoin—a type of crypto token meant to hold its price, typically pegged to the U.S. dollar. The bill aims to clarify oversight of digital assets and, crucially for Circle, could set limits on how crypto firms structure rewards linked to stablecoin usage.
Circle plans to release its first-quarter 2026 numbers on May 11, kicking things off with an 8 a.m. ET webcast for results and a rundown of business highlights. That timing brings a closer look at USDC circulation, reserve income and payment-network plans.
Circle finished Friday at $113.67, barely budging after swinging from $108.94 up to $116.44. Over at Coinbase—widely seen as both a rival and partner in crypto and stablecoin distribution—the stock advanced 4.3%. Robinhood added close to 1%.
According to Reuters, the draft deal would block customer rewards on idle dollar-backed stablecoin balances if they function like bank deposits. But rewards linked to things like making payments could remain in place.
Earlier this month, Coinbase Chief Policy Officer Faryar Shirzad said banks managed to secure “more restrictions,” though crypto companies kept usage-based rewards intact. Coinbase and its peers maintain that an outright ban would stifle competition. Banks, on the other hand, warn these products could drain deposits from the regulated system. Reuters
Circle’s latest quarter shows solid gains, though the picture isn’t straightforward. USDC circulation hit $75.3 billion in the fourth quarter, a 72% jump from a year ago. Total revenue and reserve income climbed 77%, reaching $770 million.
The model remains tied to interest rates. According to Reuters in February, Circle puts the reserves for its issued tokens into deposits and short-term U.S. Treasuries. So, when the Federal Reserve cuts rates, that can squeeze reserve earnings—even if lower rates might boost adoption.
Jeff Cantwell, analyst at Seaport Research Partners, described Circle’s most recent performance to Reuters as evidence that USDC was “scaling rapidly,” with the company turning increasingly profitable. Circle CEO Jeremy Allaire added, speaking to Reuters, that while high rates might boost revenue, lower rates could actually spur adoption and growth. Reuters
Competitive pressures may be focused, but they’re significant. Tether and Circle still anchor the stablecoin landscape, and Coinbase, with its customer retention strategy tied to stablecoin rewards, is right in the thick of the incentives debate. Geoff Kendrick at Standard Chartered has flagged a warning: U.S. banks “face a threat” as stablecoins chip away at payment networks and other banking services. Reuters
The bill faces a bumpy path. Banks are working to persuade Republican senators, but many Democrats are pushing back, citing worries about money-laundering risks and political gains. To pass, it would require support from at least seven Senate Democrats, according to Reuters.
Regulators aren’t just sitting still overseas. Bank of England Governor Andrew Bailey, speaking Friday, pointed to the need for global standards on stablecoins if they’re drawn into cross-border payments. He warned of a “wrestle” ahead with U.S. policymakers. Reuters
So, Circle faces a double challenge in the days ahead: Can USDC keep expanding fast enough to offset margin pressures? And will lawmakers come up with stablecoin legislation that pushes these tokens further into payments—without sparking renewed conflict with banks?
