Bernstein says Circle selloff may overstate risk as Clarity Act targets distributors, not issuers

Bernstein argues the recent Circle stock drop tied to proposed stablecoin rules may be overdone, noting the Clarity Act focuses on distributors of stablecoins rather than issuers. Circle earns revenue from its reserve holdings and does not pay direct yields to token holders, a distinction Bernstein says could actually strengthen Circle’s position. The near-term impact is expected to hit intermediaries like Coinbase, while Bernstein remains bullish on Circle and Coinbase due to long‑term stablecoin adoption.