Proposed US stablecoin interest ban hurts Coinbase more than Circle, says analyst

While Circle's stock plunged 20% after reports that the U.S. crypto market structure bill (CLARITY) would ban interest payments on stablecoin balances, some analysts argue the sell-off is excessive and could ultimately benefit the stablecoin issuer. Markus Thielen, founder of 10x Research, told CoinDesk that the market may be overlooking the long-term effects. He said that in its current form, the provision weakens Coinbase's distribution-focused model more than Circle's infrastructure role. Currently, Coinbase receives a significant portion of the interest revenue generated by USDC through a revenue-sharing agreement with Circle. An interest ban would diminish this advantage for Coinbase, potentially strengthening Circle's negotiating position when the agreement is up for renewal in August 2026, Thielen explained.