The bipartisan compromise on the U.S. Clarity Act's yield provisions is poised to strengthen Circle's position in the stablecoin market. The agreement restricts issuers from offering yields akin to deposit interest on passively held stablecoin balances, while allowing reward mechanisms linked to real-use cases like transactions and payments. This development favors Circle's float-based revenue model for USDC, reducing the competitive edge of high-yield offerings by other issuers.
The total supply of USD-stablecoins has reached a record high of over $300 billion, with USDC and USDT together comprising approximately 97% of the market. Additionally, USDC accounts for over 99% of global x402 Agentic Payments settlements, highlighting its dominant role in the sector.
Clarity Act Compromise Bolsters Circle as Stablecoin Supply Hits $300 Billion
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