Circle shares rebounded Wednesday after a sharp decline triggered by proposed stablecoin legislation. Analysts at Clear Street deemed the selloff 'overdone,' affirming strong demand for USDC despite restrictions on deposit-like rewards. .
Cathie Wood’s Ark Invest purchased 161,000 shares amid the dip, signaling confidence. Clear Street maintained a $152 price target, citing tailwinds like AI payments and institutional adoption. Separately, Bernstein analysts reiterated that yield prohibitions wouldn’t impact Circle’s core revenue model tied to U.S. Treasuries.
The Clarity Act’s provisions reflect ongoing regulatory pressures in the stablecoin space, though analysts believe USDC’s compliance advantage over Tether will sustain its growth trajectory.