Under the draft language, firms would be barred from providing anything \u201ceconomically or functionally equivalent\u201d to interest on stablecoin holdings.\u00a0<\/p>\n
If they were to materialize over the long term, the implications for Circle would be immediate and substantial. Circle derives approximately 96% of its revenue from interest earned on USDC reserve assets.\u00a0<\/p>\n
If platforms are prevented from offering yield or if demand for USDC softens because consumers and institutions cannot earn returns, Circle\u2019s core revenue stream could be materially weakened.\u00a0<\/p>\n
The fallout was not limited to Circle. Coinbase (COIN), the largest US-listed crypto exchange, also experienced significant pressure, trading down roughly 21% to about $179 at the time of writing.\u00a0<\/p>\n
Tether\u2019s Big\u2011Four Audit Move<\/h2>\n
In a Tuesday post <\/a>on the social media platform X, Terrett also pointed out that Tether\u2019s latest move may have amplified the crash in Circle\u2019s stock. Circle’s competitor\u00a0recently announced <\/a>that it had hired a Big Four accounting firm to audit its USDT reserves for the first time.\u00a0<\/p>\n Tether framed the engagement as a major step toward enhanced transparency and regulatory readiness, saying the audit would provide \u201cdeep assurance that USDT is fully backed, highly liquid, and operated with world-class risk management.\u201d\u00a0<\/p>\n Featured image from OpenArt, chart from TradingView.com\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" Circle Internet Financial, the issuer behind the USDC stablecoin \u2014 the second-largest dollar-pegged cryptocurrency \u2014 saw its stock, CRCL, tumble 22% on Tuesday to $98 as lawmakers reportedly moved to tighten rules around stablecoin yields.\u00a0 The selloff followed reports that a revised draft of the Senate Banking Committee\u2019s CLARITY Act would broadly prohibit platforms from…<\/p>\n","protected":false},"author":1,"featured_media":10784,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[134],"tags":[135,2463,4029,4030,4031,2616,2943,4825,2871,471,85,4524,4896,43,4458,241,747,780],"class_list":["post-10783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news-ticker","tag-breaking-news-ticker","tag-circle","tag-circle-crlc","tag-circle-news","tag-circle-stock","tag-circle-usdc","tag-clarity-act","tag-clarity-act-news","tag-coin","tag-coinbase","tag-crypto-market","tag-crypto-market-structure-bill","tag-crypto-market-structure-bill-news","tag-crypto-news","tag-stablecoin-rewards","tag-stablecoins","tag-tether","tag-tether-news"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/10783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=10783"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/10783\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/10784"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=10783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=10783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=10783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n