Circle Stock Plunges 22% as US Bill Threatens Stablecoin Rewards

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Circle stock crashes 22% as U.S. bill targets stablecoin rewards

Circle (CRCL) stock fell sharply by around 22%, marking its biggest single-day decline since June 2025. This drop was triggered by a new version of the CLARITY Act, which could potentially outlaw the interest earned on stablecoins – a move that conflicts with the recent growth of USDC.

Summary

  • Circle Internet Group (CRCL) stock is trading around $98.71, down about 22% on the day and roughly 18% below Monday’s close, its steepest slide since June 2025.
  • The sell-off follows reports that the latest draft of the U.S. CLARITY Act would sharply limit or ban yield and rewards on stablecoins, directly hitting Circle’s USDC-centric business model.
  • The move wipes billions from Circle’s market value even as USDC circulation and on-chain usage climb, highlighting the tension between regulatory risk and underlying product growth.

Shares of Circle Internet Group fell sharply on Tuesday following news that U.S. lawmakers are making changes to a stablecoin bill. These changes would limit the interest and rewards offered on stablecoins, leading investors to quickly sell off shares of Circle, a crypto stock known for its high volatility.

Circle (CRCL) stock is currently trading around $98.71 on the New York Stock Exchange, down significantly today. It’s down $27.93, or 22.05%, after opening at $126.35 and closing yesterday at $126.64. The stock hit a low of around $98.31 earlier today. According to Intellectia.ai and other market analysts, the drop reached about 18% by midday, representing Circle’s biggest single-day percentage decrease since June 2025.

Circle’s stock price dropped as part of a wider decline in crypto-related stocks. Coinbase fell over 7% to around $178.10, and Robinhood decreased by 4.7% after a proposed bill, the CLARITY Act, began circulating in Washington. The draft bill would effectively ban interest earned on stablecoins like USDC, a significant source of income for both Circle and Coinbase. This bill is seen as a major challenge to Circle’s payment and rewards system, and the proposed restrictions on interest are considered crucial to its business model, contributing to a 22% drop in its stock price on Tuesday.

Circle shares sink as CLARITY Act hits stablecoin rewards

The recent price movement of USDC is surprising given its generally strong financial position. Circle’s stock has seen significant gains, recently trading near $299 – a substantial increase from its initial public offering price of $31. This rise is likely due to positive expectations surrounding potential U.S. regulations for stablecoins. According to Circle’s own reports, the amount of USDC in use is growing quickly, along with the income earned from its reserves. Analysts at Baird have also noted a 6% increase in USDC outstanding since the last earnings report, averaging $75.2 billion as of March 15th. They’ve increased their price target for Circle stock and believe the company has a clear opportunity to generate new revenue through products like Circle Payments Network and Arc Blockchain.

In February, Reuters reported that Circle exceeded Wall Street’s revenue forecasts for the last quarter of the year, thanks to increased use of its stablecoin and higher earnings from its reserves. This news initially caused the stock price to jump almost 30%. However, CRCL stock is now trading below $100 – down about 35% from a peak of nearly $150 last week and over 20% from its highs earlier in March. This decline is happening even though USDC is leading stablecoin activity for 2026 and its on-chain usage has increased by 600% this year. This difference between strong performance of the token and the falling stock price highlights a key issue for investors: as long as U.S. lawmakers regulate stablecoins like traditional banking, Circle’s stock price appears to be more influenced by political developments than by the actual growth of USDC.

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2026-03-24 21:40