Morning Minute: Circle Plunges 20% Over Clarity Act Yield Changes
Circle stock fell 20%, its largest drop since going public, following a new Clarity Act draft that threatens to ban stablecoin yield, impacting both Circle and Coinbase (down 10%). The draft directs the SEC, CFTC, and Treasury to define permissible stablecoin rewards within a year. Industry reaction is mixed ahead of congressional review. On the same day, Tether announced its first full independent audit by a Big Four accounting firm (name undisclosed), moving towards compliance with the GENIUS Act, which mandates such audits for foreign stablecoins. Tether claims $192 billion in reserves. The CFTC also announced a new Innovation Task Force to create regulatory frameworks for crypto, AI, and prediction markets, aiming for clearer rules and future-proofed regulation. Dune analytics data revealed that over half of wallets trading Pump.fun tokens lost money in March, with 96% earning less than $500, as PUMP fell over 75% from its peak. Bernstein analysts reaffirmed a $150,000 Bitcoin price target for 2026 and support for MicroStrategy’s BTC strategy, dismissing concerns about forced sales.
