Circle stock plunges 18% as a new draft of the Clarity Act threatens stablecoin rewards

The latest version of the Clarity Act is pressuring stocks as it would restrict stablecoin rewards. What to know : Circle shares fell as much as 18%, and Coinbase dropped about 8%, after a draft of the U.S. Clarity Act raised the prospect of strict limits on stablecoin yield. The proposed legislation would bar rewards on passive stablecoin balances and ban structures "economically equivalent to interest," threatening a key incentive that has fueled USDC adoption. The sell-off hit Circle after a 170% rally since early February and came as rival Tether moved to bolster confidence by hiring a Big Four accounting firm for a full audit of its USDT reserves.(Coindesk)