Citigroup: Stablecoin interest ban won't impact Circle's core revenue

A ban on interest payments for stablecoins under the proposed U.S. Crypto-Asset Market Structure Act (CLARITY) could reduce the circulation of USDC but is unlikely to impact the core revenue of its issuer, Circle (CRCL), according to an analysis by Citigroup. CoinDesk reported that the bank noted that while the measure could potentially hinder scaling, it would not completely undermine the investment case for the company. Citigroup stated its belief that the key metric for stablecoins is transaction volume, not circulating supply. The bank has assigned a "high risk" rating to Circle's stock and set a price target of $243.