CRCL Tanks 12% as Trump-Endorsed Crypto Legislation Crashes in Senate Vote—’Regulatory Winter’ Looms
Circle's stock (CRCL) got caught in the crypto crossfire today after bipartisan efforts to fast-track digital asset regulations collapsed spectacularly.
The failed vote—seen as a litmus test for political crypto adoption—triggered instant liquidations across crypto-adjacent equities. Market makers didn't even wait for the final tally before dumping positions.
Washington's latest blockchain blunder proves even celebrity endorsements can't fix systemic regulatory paralysis. Meanwhile, decentralized protocols continue eating Wall Street's lunch—because code doesn't care about Senate procedure.
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It is worth noting that the failed vote also delayed progress on the GENIUS Act, which would create the first federal regulations for stablecoins. Indeed, the bill includes requirements for full reserves, monthly audits, and a framework that would allow private companies to issue government-regulated digital dollars. Interestingly, the GENIUS Act already passed the Senate last month, which was a significant achievement for the crypto sector and for President Donald Trump, who has been actively promoting digital assets.
Moreover, Treasury Secretary Scott Bessent previously said that the U.S. stablecoin market could grow to over $2 trillion if the bill becomes law, while David Sacks, the WHITE House’s AI and crypto advisor, added that it could unlock trillions in demand for U.S. Treasury notes almost immediately. Despite the setback, the House may hold another vote as soon as Tuesday evening, though it’s unclear whether the bill or the voting rules will be revised in order to address lawmakers’ concerns.
Is CRCL Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CRCL stock based on five Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRCL price target of $185.73 per share implies 5% downside risk.
