Circle Faces Long-Term Pressure As Clarity Act Advances, Mizuho Says

Mizuho analysts said the Clarity Act could hurt Circle over the long term because the company retains about 38% of USDC reserve income. According to NS3.AI, the bill could also invite more institutional competition into the stablecoin sector. Republicans released the latest text for the legislation, and a full Senate vote could happen as soon as next week. The analysts said the proposal may change the competitive landscape for stablecoins if it moves forward.