Circle Internet Group’s stock fell by roughly 20% on March 24, wiping about $4.6 billion from its market cap after a draft update to the CLARITY Act surfaced. The proposal aims to bar crypto platforms from passing stablecoin yield to customers, though analysts argue the sell-off may be an overreaction as the rule would codify Circle’s existing practice of keeping USDC reserve yield.
Circle Internet Group saw its CRCL stock price plummet from over $126 to around $101 in a single session. The sell-off erased approximately $4.6 billion from the market cap of the firm behind USDC, the world’s second-largest stablecoin.
Market observers suggested the sharp decline may have overstated the policy shift. MoonRock Capital founder Simon Dedic described the event as a potential “sell the news” reaction after a prior six-week rally.
Dedic argued the proposed CLARITY Act update actually provides Circle with a regulatory advantage. He noted the company already keeps the yield generated from USDC reserves, meaning the proposed rule would just codify what the company already does.
He called the setup “massively bullish for Circle,” Dedic wrote in a post on X. Growth specialist Jose Fabrega made a similar point in a separate statement.
“USDC never paid you yield to begin with. Circle will be just as profitable and still has huge growth potential,” Fabrega said. He suggested DeFi protocols and real-world asset platforms could benefit as yield-seeking capital flows elsewhere.
On-chain data cited by XWIN Research Japan shows stablecoin active addresses are at record highs. This indicates growing real-world usage despite the regulatory focus on yield.
