New York, January 16, 2026, 15:16 EST — Regular session
- After plunging nearly 10% the previous day, Circle shares bounced back, climbing roughly 3% in afternoon trading
- Washington uncertainty flared again as senators delayed a crucial session on the crypto market-structure bill
- Rules on stablecoin “rewards” and the late-January committee schedule have returned to the spotlight
Circle Internet Group shares bounced 2.8% to $78.76 on Friday, recouping some losses after Thursday’s sharp 9.7% fall. Investors continue to grapple with new doubts surrounding U.S. crypto legislation. The stock fluctuated between $75.60 and $80.00, closing higher on roughly 8.0 million shares traded.
This shift is significant since Circle stands out as one of the rare publicly traded companies focused solely on stablecoins—digital tokens that aim to maintain a stable value by pegging to the U.S. dollar. The stock often reacts sharply when lawmakers signal changes toward clearer U.S. regulations.
The latest setback came from Capitol Hill. The Senate Banking Committee scrapped a planned markup — where senators hash out amendments — on a crypto market-structure bill known as the Clarity Act. This followed Coinbase CEO Brian Armstrong’s public rejection, citing “too many issues” with the bill. “We’d rather have no bill than a bad bill,” Armstrong said. Senate Banking Chairman Tim Scott insisted talks were still “working in good faith,” while a trade group official called the pause a “time for additional deliberation.” The draft aims to clarify when tokens qualify as securities or commodities and to sharpen the battle between the SEC and CFTC. It also targets “rewards” linked to dollar-pegged stablecoins, a contentious point dividing banks and crypto firms. (Reuters)
Circle’s exposure is very real. The company generates reserve income by investing the cash and short-term assets that back USDC. It has highlighted rising stablecoin circulation as a major factor behind its results. (Reuters)
Crypto markets showed a mixed picture on Friday. Bitcoin dipped roughly 0.7% to $94,861. Coinbase shares, meanwhile, edged up around 0.9% during U.S. trading.
On the calendar, the Senate Agriculture Committee plans to release the legislative text on Jan. 21, with a markup session slated for Jan. 27 at 3 p.m., the committee announced. (Senate Committee on Agriculture)
The downside is straightforward: if the bill stalls, Circle and similar companies will keep trading based on political noise rather than solid fundamentals. Plus, if the final wording tightens rules on how platforms can offer incentives tied to stablecoins, it could cut off a key marketing tool that boosts user engagement.
CRCL traders are now watching closely for any indication that the Senate Banking text is moving quickly enough to stick to the late-January timeline, rather than slipping further down the road.
