Circle (CRCL) Crashes Below $100 After Senate Revises Crypto Bill To Ban Stablecoin Rewards

Circle Internet Financial, the issuer behind the USDC stablecoin — the second-largest dollar-pegged cryptocurrency — saw its stock, CRCL, tumble 22% on Tuesday to $98 as lawmakers reportedly moved to tighten rules around stablecoin yields. The selloff followed reports that a revised draft of the Senate Banking Committee’s CLARITY Act would broadly prohibit platforms from offering yield “directly or indirectly” for holding stablecoins or assets that function like bank deposits. Circle Revenue Model At Risk? The proposed restriction, reported by Crypto in America journalist Eleanor Terrett, is written to cover digital-asset service providers and their affiliates — exchanges, brokers, and similar firms — in an effort to close potential workarounds. Under the draft language, firms would be barred from providing anything “economically or functionally equivalent” to interest on stablecoin holdings. Related Reading: Bitcoin Expert Predicts ‘Golden Entry Window’ For Next Bull Market In October