Circle Internet Financial, the issuer behind the USDC stablecoin \u2014 the second-largest dollar-pegged cryptocurrency \u2014 saw its stock, CRCL, tumble 22% on Tuesday to $98 as lawmakers reportedly moved to tighten rules around stablecoin yields.\u00a0<\/p>\n
The selloff followed reports that a revised draft of the Senate Banking Committee\u2019s CLARITY Act would broadly prohibit platforms from offering yield \u201cdirectly or indirectly\u201d for holding stablecoins or assets that function like bank deposits.<\/p>\n
The proposed restriction, reported <\/a>by Crypto in America journalist Eleanor Terrett, is written to cover digital-asset service providers and their affiliates \u2014 exchanges, brokers, and similar firms \u2014 in an effort to close potential workarounds.\u00a0<\/p>\n Under the draft language, firms would be barred from providing anything \u201ceconomically or functionally equivalent\u201d to interest on stablecoin holdings.\u00a0<\/p>\n If they were to materialize over the long term, the implications for Circle would be immediate and substantial. Circle derives approximately 96% of its revenue from interest earned on USDC reserve assets.\u00a0<\/p>\n If platforms are prevented from offering yield or if demand for USDC softens because consumers and institutions cannot earn returns, Circle\u2019s core revenue stream could be materially weakened.\u00a0<\/p>\n The fallout was not limited to Circle. Coinbase (COIN), the largest US-listed crypto exchange, also experienced significant pressure, trading down roughly 21% to about $179 at the time of writing.\u00a0<\/p>\n In a Tuesday post <\/a>on the social media platform X, Terrett also pointed out that Tether\u2019s latest move may have amplified the crash in Circle\u2019s stock. Circle\u2019s competitor\u00a0recently announced <\/a>that it had hired a Big Four accounting firm to audit its USDT reserves for the first time.\u00a0<\/p>\n Tether framed the engagement as a major step toward enhanced transparency and regulatory readiness, saying the audit would provide \u201cdeep assurance that USDT is fully backed, highly liquid, and operated with world-class risk management.\u201d\u00a0<\/p>\n Featured image from OpenArt, chart from TradingView.com\u00a0<\/p>","protected":false},"excerpt":{"rendered":" Circle Internet Financial, the issuer behind the USDC stablecoin \u2014 the second-largest dollar-pegged cryptocurrency \u2014 saw its stock, CRCL, tumble 22% on Tuesday to $98 as lawmakers reportedly moved to tighten rules around stablecoin yields.\u00a0 The selloff followed reports that a revised draft of the Senate Banking Committee\u2019s CLARITY Act would broadly prohibit platforms from […]<\/p>\n","protected":false},"author":0,"featured_media":144442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-144441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/144441"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=144441"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/144441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/144442"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=144441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=144441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=144441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Tether\u2019s Big\u2011Four Audit Move<\/h2>\n