Threat wey dem wan ban USDC yield hit Circle, USDC revenue dey risk

Circle share don drop this week as traders dey react to two same-day katalyst plus wider competition—most directly, one proposed rule wey dey target USDC “passive yield.” Circle close last week near $93.6, down about 26% from roughly $126 before the drop. The selloff pick up on Tuesday after (1) Senate draft linked to the CLARITY Act wey fit restrict passive yield wey dem dey pay to stablecoin holders and (2) news say rival Tether hire one big accounting firm (reported Deloitte) to do reserves audit. Traders dey now reassess the USDC yield engine wey dey support retail adoption, especially through Coinbase-style distribution. If dem ban passive yield, analysts expect Circle go shift to activity-based incentives instead of yield-based programs—this operational and product reset fit take 2–4 quarters to stabilize and as long as 18 months to fully normalize. The Tether audit still bring competitive risk: if markets read the audit as strong reserve validation, some institutional flows fit rotate from USDC to USDT in the near term. Looking forward, Senate Banking Committee markup dey expected in second half of April, and bill fit drop before that window. Until lawmakers clarify wetin dey allowed, uncertainty around USDC revenue sensitivity to stablecoin yield rules likely go keep sentiment fragile.