Circle’s CLARITY Act Selloff May Be Overdone as Stablecoin Draft Hits Coinbase Harder
Circle shares plunged 20% Tuesday, their steepest drop on record, after a Senate draft bill targeted rewards for holding stablecoins. The draft bars digital asset providers from paying interest solely for holding payment stablecoins but allows transaction-based incentives. Analysts at Bernstein and Citigroup said the selloff may have overshot, noting the bill does not restrict reserve income earned by issuers like Circle.