Circle (CRCL) slides 15% as draft CLARITY Act would bar stablecoin yield payments

Circle shares sank 15% after new language in the advancing CLARITY Act flagged a potential ban on stablecoin issuers paying yield to token holders. The proposal undercuts a key pillar of Circle's model: interest income on USDC reserves, which accounts for nearly 95% of CRCL's revenue. CRCL, which priced its IPO at $31 and later surged as high as $299, is now facing renewed pressure as Washington weighs a compromise that aligns more closely with traditional banks.