🚨Stablecoin rewards restrictions can slow but not stop Circle's USDC, says Citigroup

USDC adoption hinges on volume, not circulation, the bank said

What to know:

Citi said limits on stablecoin rewards could reduce USDC circulation short term, but won’t hit Circle’s core revenue.

The bank maintained that stablecoin usage (volume), not supply, is the primary adoption signal.

The Circle selloff reflected a market misread of the draft Clarity Act, according to broker Bernstein.