CRCL, COIN news: CLARITY's stablecoin yield ban shifts bargaining power from Coinbase to Circle
Analysts suggest Circle's selloff is overdone, as the CLARITY Act may weaken Coinbase's advantage and strengthen Circle's position.Summary
The recent draft of the CLARITY Act has impacted both Circle (CRCL) and Coinbase (COIN) stocks, but analysts at 10x Research believe the bill could ultimately shift bargaining power towards Circle. Currently, Coinbase benefits significantly from its distribution agreement with Circle, receiving a large portion of the interest income from USDC holdings. However, if the CLARITY Act restricts yield-like rewards on stablecoin balances, Coinbase’s high-margin revenue stream could diminish. Markus Thielen argues this setup increasingly favors Circle, especially as the two companies approach commercial renegotiations in August 2026. Bitwise CIO Matt Hougan also believes the selloff in Circle is “overblown,” citing the potential for stablecoin market growth to $1.9 trillion or $4 trillion by the end of the decade, with Circle poised to benefit from increased regulation and a shift towards compliant issuers. He estimates Circle could potentially be valued at $75 billion, double its current level.
(Source：CoinDesk)