It reported that related stocks posted double-digit weekly declines as US-driven regulatory uncertainty over stablecoins increased. It reported that in Korea, Kakao Pay, NHN KCP, and Danal widened their losses, falling 16.80%, 16.01%, and 12.04%, respectively. It said that as the US Senate debates the CLARITY Act, concerns are rising over restrictions on interest payments and pressure on revenue structures, fueling expectations of a squeeze on business models.
Coinbase fell 18.41% from the prior week to $161.14, while Circle Internet plunged 25.68% to close at $93.66. Losses began to accelerate from the 24th (local time). Analysts say this followed discussions in the US Senate on revisions to the CLARITY Act bill to limit interest payments on stablecoin holdings, heightening concerns over a potential squeeze on business models.
The CLARITY Act is legislation aimed at overhauling market structure for digital assets and clarifying the regulatory framework. In addition, if interest payments on stablecoin holdings are restricted, reward-based services could contract, potentially weighing on companies’ revenue structures, according to market observers.
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