Circle is almost -20% down today.

Everyone’s discussing it, yet hardly anyone actually understands what’s going on.
The new hints on the Clarity Act potentially not allowing yield passthrough is a classic sell the news event. Insiders have been frontrunning this for 6 weeks while $CRCL pulled a 3x from the bottom.
But here’s what people are missing : this is massively bullish for Circle.
Their entire business model is built on keeping the yield generated by their $USDC supply. The Clarity Act essentially gives them a regulatory moat to maintain that model, while conveniently being able to say they’d love to pass the yield through but regulators won’t let them.
The dump was then accelerated by the news that Tether is pursuing a full audit, which threatens Circle’s positioning in the US and Western markets as the tightly regulated, more trusted alternative to $USDT.
The race between Tether and Circle just got a lot more interesting.
That said, I believe the Clarity Act will ultimately allow both companies to grow massively, so the fight for first and second place is secondary to me for the next few years.
Hope this was helpful. Couldn’t stand the uninformed takes anymore claiming this is somehow bearish for Circle.
If anything, this might be a great entry for anyone with a time horizon longer than that of a goldfish.