Panic in #WallStreet !
The shares of #Circle plummet by 20% following a legislative threat that could annihilate the yields of stablecoins.
The optimism surrounding Circle #CRCL has evaporated in a single session. After weeks of meteoric gains, the shares of the USDC stablecoin issuer suffered a vertical drop of 20.11%, closing at 101.17 USD.
The reason: a legislative draft that directly attacks the financial heart of the ecosystem.
The blow from the "Clarity Act": The new version of this U.S. legislation proposes to prohibit the payment of yields or rewards simply for holding stablecoins. According to analysts, this aims to prevent stablecoins from functioning as disguised bank deposits.
Attack on the income model: Currently, Circle generates interest from the reserves backing #USDC and shares those benefits with partners like Coinbase, who in turn offer rewards to users. The law would prohibit any incentive that is "economically equivalent to interest," breaking this cycle of adoption.
Weakening of the "Bullish" thesis: Experts from Mizuho and Futurum Equities warn that, without yield incentives, the utility of USDC is strictly limited to payments, losing its appeal as a long-term store of value.
End of the bullish streak: This crash abruptly ends a rally that had seen CRCL double its value (+100%) in previous weeks, demonstrating the extreme sensitivity of investors to regulatory changes in Washington.
$QQQon
$CRCL
