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Compass Point downgrades Circle Internet to Sell after stablecoin bill passes

Compass Point downgraded Circle Internet (CRCL) to Sell from Neutral with a price target of $130, down from $205 after the U.S. stablecoin legislation passed last week. The firm still believes USDC can be an integral part of the financial system, though it is more cautious towards Circle’s long-term economics than its $53B valuation implies. The firm added that, in the coming months, it expects Circle to expand its distribution network while sharing a greater percent of interest income.

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