Mizuho says CLARITY Act could intensify stablecoin competition, hurt USDC profitability

Mizuho said that if the CLARITY Act, a U.S. crypto market structure bill, takes effect, institutional competition in the stablecoin market could expand and weaken the profitability of Circle's USDC. According to The Block, Mizuho said that if the CLARITY Act removes regulatory uncertainty, more stablecoin products could emerge and take revenue from Circle. Mizuho added that Open USD, backed by about 140 companies including Visa, Mastercard, Stripe, BlackRock and Coinbase, could be more competitive than Circle because it distributes most reserve-management income to distributors, while Circle retains only about 38% of reserve income. It also said that because Coinbase, the largest distributor of USDC, supports Open USD, it could move as early as next month to renegotiate its revenue-sharing agreement with Circle and gain the upper hand.