Bernstein: Circle selloff may miss Clarity Act mark

Bernstein analysts suggest that recent selloffs in Circle shares are an overreaction to proposed stablecoin regulations. Investors appear to be misinterpreting the Clarity Act, conflating stablecoin issuers with distributors. The research firm argues that the proposed rules primarily target distribution channels rather than the entities that issue stablecoins. Circle generates revenue from its reserves, while platforms like Coinbase pass yields directly to their users. This distinction is crucial for understanding the actual impact of the legislation on Circle's business model.