Shares of Circle (CRCL), the stablecoin firm best known for issuing USD Coin (USDC-USD), fell by 4.5% on Tuesday after the U.S. House of Representatives failed to pass a key vote that would have allowed lawmakers to move forward with long-awaited crypto bills. The vote was seen as a major opportunity for the digital asset industry to finally receive clear federal rules. As a result, other crypto-related stocks, such as Coinbase (COIN) and bitcoin miner MARA Holdings (MARA), also dipped. Nevertheless, even with the pullback, Circle’s stock remains more than six times higher than its IPO price last month.
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It is worth noting that the failed vote also delayed progress on the GENIUS Act, which would create the first federal regulations for stablecoins. Indeed, the bill includes requirements for full reserves, monthly audits, and a framework that would allow private companies to issue government-regulated digital dollars. Interestingly, the GENIUS Act already passed the Senate last month, which was a significant achievement for the crypto sector and for President Donald Trump, who has been actively promoting digital assets.
Moreover, Treasury Secretary Scott Bessent previously said that the U.S. stablecoin market could grow to over $2 trillion if the bill becomes law, while David Sacks, the White House’s AI and crypto advisor, added that it could unlock trillions in demand for U.S. Treasury notes almost immediately. Despite the setback, the House may hold another vote as soon as Tuesday evening, though it’s unclear whether the bill or the voting rules will be revised in order to address lawmakers’ concerns.
Is CRCL Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CRCL stock based on five Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRCL price target of $185.73 per share implies 5% downside risk.
