Circle Internet Stock Plummets Over Stablecoin Legislation Concerns

LootboxPhobia · 2026-03-24T22:49:46+00:00

Circle Internet Group and Coinbase Global declined due to stablecoin legislation proposal, with the former down 17% and the latter down 8%. The new proposal will restrict platforms from providing yields for stablecoin holdings and ban interest-equivalent activities, while allowing activity-based rewards.

LootboxPhobia

2026-03-24 22:49:46

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Investing.com – Circle Internet Group (NYSE: CRCL) fell 17% on Tuesday, while Coinbase Global (NASDAQ: COIN) declined 8%, following reports that proposed legislation on stablecoins might restrict yield products.

The decline appears to be related to new details about legislation on stablecoin yields and rewards.

According to a report by Crypto in America citing an internal stakeholder email, the proposal would ban platforms from “directly or indirectly” offering yields on stablecoin holdings or in a manner similar to bank guarantees.

This restriction would broadly apply to digital asset service providers, including exchanges, brokers, and their affiliates, to prevent circumvention. The legislation would prohibit any activity “economically or functionally equivalent to” interest.

The proposal would allow activity-based rewards related to user engagement, including loyalty, promotional, or subscription programs, provided they are not considered economically or functionally equivalent to interest. It would direct the SEC, CFTC, and Treasury to jointly define permissible rewards and establish anti-circumvention rules within a year.

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