Circle’s CRCL shares dropped 20% on Tuesday following a recent surge in value for the firm’s stock. As of the close of trading, CRCL changed hands for $101.24, falling just over 20% on the day, and it’s ticking down further in after-hours trading thus far.
Early Tuesday, stablecoin rival Tether—issuer of the largest stablecoin by market cap, USDT—said that it had agreed to undergo a full audit by an unnamed “Big Four” accounting firm, one of the last potential hurdles to compliance with the U.S. GENIUS Act. That could make Tether a bigger domestic threat to Circle in the future. Circle’s share price may also have been impacted by the latest developments with the proposed Clarity Act market structure bill that’s still being revised by lawmakers.
Crypto lobbyists reviewed compromise language regarding stablecoin yield on Monday, with the banking lobby currently reviewing to see if they’ll get onboard with the version of the language put together by Senators Alsobrooks and Tillis and the White House. Two sources indicate the latest language could permit yield on staked stablecoins, a change that would be a meaningful win for the crypto industry. If implemented, it could unlock new revenue models for stablecoins and influence sector sentiment as policy debates continue.
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