Circle Internet Corp. (CRCL) saw its stock plummet by 7.36% during intraday trading on Friday, following the announcement of conditional approval from the US Office of the Comptroller of the Currency (OCC) to establish a national trust bank.
The proposed First National Digital Currency Bank will operate as a federally regulated trust bank, overseeing the management of USDC Reserve stablecoins. While the approval is a significant regulatory milestone, investors reacted negatively, leading to the sharp decline in share price.
The conditional approval marks a critical step for Circle Internet Corp. in expanding its regulatory footprint, but market sentiment suggests concerns over the implications of this development.
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