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No passive income: CLARITY bill crashes USDC issuer stock
Shares of Circle Internet Group (CRCL), the issuer of the USDC stablecoin, fell by around 20% on March 24, 2026 — dropping from about $126 at the previous close to the $98–102 range during the trading session. The decline coincided with news of a legislative compromise on stablecoins in the U.S. Congress — and the market reacted to this factor almost immediately.
CRCL/USD 1-day chart
CLARITY bill developments
On March 20, 2026, Senators Tom Tillis and Angela Alsobrooks announced a preliminary agreement with the White House on a key disputed provision of the CLARITY bill. The core of the compromise: stablecoin holders will not be able to earn income simply by holding balances. Passive yield is prohibited. However, rewards for active usage remain allowed — transfers, payments, and platform operations may still generate incentives.
Alsobrooks confirmed the agreement in an interview with Politico: “Senator Tillis and I have reached a fundamental agreement.” According to her, the compromise protects innovation while preventing a mass outflow of deposits from the banking system. Tillis noted that the final text still needs to be aligned with industry participants.
For Circle, the implications are clear: a significant part of its investment thesis was based on USDC as a savings instrument. The ban on passive yield effectively eliminates this use case at the regulatory level.
Tether moves toward an audit
Against this backdrop, on the same day, March 24, Tether — issuer of the largest stablecoin USDT — announced a contract with one of the Big Four firms to conduct its first-ever full independent financial audit. The audit will cover reserves, internal controls, and operations involving both digital and traditional assets. The company described it as the largest debut audit in financial market history.
Tether CEO Paolo Ardoino described the audit as a step toward maximum transparency and compliance with global financial standards. CFO Simon McWilliams noted that the auditing firm was selected through a competitive process and is already operating under Big Four-level requirements.
The timing of the announcement is notable. While Circle is suffering losses due to regulatory restrictions, Tether is demonstrating a move toward the transparency that markets have long demanded.
These two events — Circle’s stock drop and Tether’s audit announcement — together reflect an industry that is being forced to adapt to regulatory frameworks faster than expected. Although the final version of the CLARITY Act has not yet been approved, the direction of regulation is already becoming clear.
AI perspective
From a regulatory standpoint, Circle’s situation is a rare case where a company actively helped shape the rules of the game but ultimately suffered from their final form. Circle consistently advocated for regulatory clarity, was among the first to comply with the EU’s MiCA framework, and publicly supported the GENIUS Act — legislation that effectively bans yield-bearing stablecoins. The market reacted instantly: regulatory clarity turned out to be not what shareholders had expected.
See also: "Bitcoin today: rises above $71K amid mixed signals"
