Bernstein: Circle's Stock Price Correction May Be Overdone, Market Misinterprets Stablecoin Regulatory Impact

Odaily According to a report by The Block, in response to the significant correction in Circle's stock price, investment bank Bernstein stated that the market's interpretation of the US stablecoin regulatory draft is biased, and the current sell-off may have exceeded fundamental risks. Previously, Circle's stock price fell by approximately 20% in a single day, briefly approaching the $100 mark, primarily influenced by a clause in the draft "Clarity Act" that proposes limiting earnings from stablecoin balances. However, Bernstein pointed out that this rule targets distributors, not issuers. Analysts emphasized the need to distinguish between stablecoin issuers and distribution platforms: Circle earns interest spread by investing its approximately $80 billion USDC reserves in short-term US Treasury bonds, with related revenue estimated at around $2.64 billion in 2025, but it does not directly pay interest to token holders. (The Block)