Circle Is Up 7.85% Today And The Clarity Act Is The Entire Story

Three weeks ago, Circle posted its worst single day since IPO after a leaked Senate draft revealed language banning passive yield on stablecoins. The stock crashed 20% in a day from $126 to the low $90s. Given that roughly 95% of Circle's revenue comes from interest on USDC reserves, a yield ban would hit the business model directly.

What's changed: White House economists published a report this week dismissing the yield ban argument, finding it would increase bank lending by just 0.02% and result in a net welfare loss. The crypto market read that as a green light for the CLARITY Act to advance without the yield restriction, and CRCL has been recovering since.

The CLARITY Act Senate Banking Committee markup is still targeted for late April. Polymarket has passage odds at 63%. If it clears without the yield ban, $CRCL has a clear path back toward the $120 to $130 range.