USDC Issuer Circle’s Stock Rebounds After Regulatory-Driven Plunge, ARK Invest Buys Dip
Circle Internet Group's stock (CRCL) plunged 20% following a proposed provision in the Clarity Act that could ban yield on stablecoin holdings. The legislation, still under review, aims to establish a regulatory framework for digital assets but threatens a core revenue stream for Circle, which relies heavily on interest from its USDC reserves.
ARK Invest seized the opportunity, acquiring over 160,000 CRCL shares worth approximately $16.2 million during the selloff. Meanwhile, Tether raised the competitive stakes by announcing its first full independent audit by a Big Four firm.
Analysts remain bullish. Clear Street and William Blair maintained Buy/Outperform ratings, with Clear Street setting a $152 price target. By Wednesday, CRCL had recovered 3.4% to $104.61, though it remains 65% below its 52-week high of $298.99.
