Circle Internet Corp.'s stock plummeted 5.05% during intraday trading on Wednesday, reflecting heightened investor concerns over the stablecoin issuer's regulatory outlook.
The sharp decline follows reports that U.S. banks are advocating for a ban on companies paying any form of interest or yield to customers on their stablecoin balances. This position, presented during White House-facilitated negotiations, represents a significant threat to the business models of stablecoin issuers like Circle. The banking industry argues that such payments could lead to deposit outflows from traditional banks, weakening their lending capacity. This regulatory impasse has stalled the Digital Asset Market Clarity Act of 2025, a key piece of legislation the crypto industry has been seeking.
The negative sentiment was compounded by a broader sell-off in cryptocurrency-related assets. Major cryptocurrencies like Bitcoin and Ethereum also traded lower ahead of key U.S. economic data releases, contributing to the pressure on crypto-linked stocks.
Comments