Circle plunges on report of proposal prohibiting platforms from offering yield payments
Circle, the firm behind the second-largest stablecoin, USDC, sank over 18.5% after journalist Eleanor Terrett posted on X that lawmakers are considering a proposal that would prohibit platforms such as exchanges and brokers from offering yield payments for holding stablecoins. Shares of US-based crypto exchange Coinbase, which has benefited from its ties to Circle and holds a minority interest in the stablecoin issuer, also fell on the report.
Stablecoin competitor Tether also announced signing a “Big Four” accounting firm to complete a full independent financial statement audit today, aimed at providing assurance that USDT is fully backed and highly liquid, the company’s press release said. The firm has never before allowed an independent audit, which has long plagued the company as investors questioned whether USDT is actually backed by its reserves.
The amount of Circle’s USDC in circulation sits at $81 billion, less than half the figure of the industry leader, Tether, whose USDT stablecoin sits at $184.2 billion, data from blockchain analytics firm Artemis shows.
Stablecoin competitor Tether also announced signing a “Big Four” accounting firm to complete a full independent financial statement audit today, aimed at providing assurance that USDT is fully backed and highly liquid, the company’s press release said. The firm has never before allowed an independent audit, which has long plagued the company as investors questioned whether USDT is actually backed by its reserves.
The amount of Circle’s USDC in circulation sits at $81 billion, less than half the figure of the industry leader, Tether, whose USDT stablecoin sits at $184.2 billion, data from blockchain analytics firm Artemis shows.
