Circle stock down 22% after Clarity Act hits USDC
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- Circle saw its stock plunge up to 22% intraday, the steepest drop ever for the company, triggering losses across crypto‑linked equities.
- Coinbase fell as much as 11% after the Clarity Act draft threatened its 3.5% USDC rewards program, as noted by analyst John Todaro.
- Bitcoin dropped 2.8% to $68,906.31, slipping below $70,000 following the regulatory news.
- Tether announced a formal agreement with a big‑four accounting firm to conduct its first full audit, fueling speculation of a U.S. market entry.
- Circle had previously surged 750% above its IPO price after the July Genius Act passage, but its shares are now more than 60% below that peak.
Why it matters: Investors in Circle and related crypto equities lose value as the Clarity Act draft could strip USDC reward yields, while Tether gains a credibility boost from its audit deal, potentially reshaping the competitive stablecoin landscape. The move also pressures Coinbase’s 3.5% USDC reward program and nudges Bitcoin lower, highlighting regulatory risk for token‑based finance.
