TechFlow reports that on March 25, 10x Research published an analysis on X stating that the battle for dominance in the stablecoin economy has already begun between Circle and Coinbase. Circle’s stock recently fell approximately 20% in a single day; some investors attribute this decline to uncertainty stemming from the CLARITY Act, while others argue the Act could instead provide structural tailwinds. Circle supports a federal-level stablecoin regulatory framework in exchange for institutional legitimacy and long-term expansion opportunities for USDC, whereas Coinbase prioritizes short-term profitability via yield-bearing balances—creating a fundamental divergence in their business models. Under such a regulatory framework, Circle may abandon certain high-margin distribution models but would gain more sustainable “regulatory certainty,” potentially accelerating institutional adoption, global settlement use cases, and deeper integration with traditional financial systems. 10x Research added that, given the current market environment, it will revisit its prior recommendation to “go long Circle and short Coinbase” and assess whether this strategy remains viable.
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