Circle's stock price dropped 20%, and the trigger was— One line from the new U.S. regulation: Stablecoins are not allowed to generate yields. Whether it's paying interest outright or offering indirect incentives, it's all a no-go ‍♀️ This is a big blow to Circle, as 96% of its revenue comes from interest-related business. The new regulation aims to push stablecoins from being 'yield-generating assets' back to 'payment tools,' shaking the foundation of Circle's business model expectations. Plus, there are 2 additional bearish factors : 1. Tether suddenly announced plans for an audit, which means Circle's previous 'compliance advantage' is being eroded. 2. Circle froze 16 USDC wallets, reigniting concerns about centralization. Although the bill hasn’t passed yet, the direction is clear— Competing with banks for their turf will always face regulatory constraints. The uncertainty is too high, and the market fears this kind of boundless bearish news the most. CRCL