TechFlow News, March 25: According to The Block, Circle’s stock price dropped nearly 20% on Tuesday amid market concerns over provisions in the draft U.S. Clarity Act that restrict yield generation for stablecoins. Bernstein analysts contend that the market has misinterpreted the legislation, emphasizing that the bill primarily targets distributors—not issuers. Circle generates reserve income by investing in short-term U.S. Treasury securities and does not directly pay yield to token holders; thus, it is not directly bound by this provision. Bernstein maintains its Outperform rating on both Circle and Coinbase, with price targets of $190 and $440, respectively.
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