Bernstein: The compromise clause on the yield of the CLARITY Act will strengthen Circle's competitive advantage

By: rootdata|2026/05/20 04:45:02

Bernstein stated in its latest research report that the recently reached compromise on stablecoin yield in the U.S. CLARITY Act is structurally beneficial for Circle and the USDC ecosystem.

The report indicates that the current version of the bill prohibits stablecoin issuers from paying interest to passive holders that is "economically equivalent" to bank deposits, but allows reward mechanisms related to real transactions, payments, and usage behaviors to continue. Bernstein believes this means that Circle's current model, which relies on partners like Coinbase to provide USDC reward programs, will gain regulatory recognition, while also limiting the industry's ability to compete for market share through high yields.

Bernstein pointed out that the bill actually reinforces the positioning of stablecoins as "payment tools" rather than "deposit substitutes," which helps protect Circle's current business model that relies on reserve income. It continues to give Circle an "outperform" rating and a target price of $190.

Data shows that the total supply of global dollar stablecoins has surpassed $300 billion, with USDT and USDC together accounting for about 97% of the market share. Bernstein noted that USDC's share in on-chain payments and wallet transfers is continuously increasing, with its payment share in the AI Agent payment protocol x402 exceeding 99%.

Additionally, Bernstein mentioned that Circle's launched ARC chain has completed a total of 244 million testnet transactions, and its ARC token presale previously raised $222 million, with investors including a16z crypto, Apollo Funds, ARK Invest, and BlackRock among others.

However, the report also pointed out that the CLARITY Act still needs to complete several legislative procedures before it can officially take effect, including a full Senate vote with 60 votes and coordination with the House version. Polymarket currently predicts a probability of about 62% for it to pass by 2026.

-- Price

Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance

"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?

Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun

OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

New gameplay for participating in initial offerings on cryptocurrency exchanges

In this competition for cutting-edge assets, what has always been truly scarce is not the technology, but the underlying equity itself.

Why Is Bitcoin Down Today? What the Hawkish FOMC Means for SpaceX, Gold and Nasdaq

Why is Bitcoin down today? A hawkish FOMC pressured crypto and gold, while SpaceX surged to a $2.5 trillion valuation and Nasdaq gained attention. Here's what happened and why traders are looking beyond Bitcoin.

DeepSeek Financing Story

DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Morning Report | DeepSeek completes over $7 billion in financing, with a valuation exceeding $50 billion; Musk's personal wealth has surpassed the total market value of Bitcoin

Overview of Important Market Events on June 16

Cursor, why did you get on Musk's spaceship?

SpaceX set a record with its IPO, spending a staggering $60 billion to acquire the popular AI programming unicorn Cursor just four days later. Musk is using the ultimate puzzle of "super computing power + top coding engine" to propel the market value skyrocketing, surpassing Amazon in one fell swoop...

In the name of charity, for the benefit of the family: How the Trump family turned charity into profit?

This set of "beautiful rhetoric and value return to one's own people" has not stopped at charitable foundations; it has now almost been transferred intact to American Bitcoin.

Will Gold Break $4,500 After Tonight's Fed Decision? What XAUT and PAXG Traders Need to Know

The Federal Reserve announces its June rate decision tonight. Could gold break $4,500 next? Explore the latest gold price prediction, key Fed scenarios, and what they mean for XAUT and PAXG traders.

SharpLink CEO: How to understand that Ethereum developers have just surpassed 1 million?

The most important question in the cryptocurrency industry is not which chain is the fastest, but rather where top builders choose to build in the long term. Ethereum has just surpassed one million cumulative developers; what does this number mean?

Morning Report | Illinois signs the strictest digital asset tax law in the U.S.; RWA tokenization market size surpasses $43 billion, institutions accelerate the migration of on-chain assets

Overview of Important Market Events on June 17