Circle stock drops nearly 20% as CLARITY Act draft targets stablecoin yield

Circle's stock fell nearly 20% to around $102.85 after a report indicated that a draft of the CLARITY Act includes language banning passive yield on stablecoin balances, restricting structures resembling interest-bearing deposits. Although Circle's USDC currently does not offer yield, this restriction curtails a potential future evolution of the stablecoin into a store of value, weakening its competitive standing. The proposed change is a compromise following pushback from the banking sector, which feared yield-bearing stablecoins would disrupt traditional lending. While rewards tied to user activity might still be permitted, the exact structure remains unclear. The CLARITY Act is part of a larger effort to create a comprehensive digital asset framework in the US, and this yield restriction remains a significant factor influencing stablecoin issuers.

(Source：Crypto Briefing)