Monness would be adding to Coinbase short, remains long Circle Internet

Monness Crespi would argue that President Trump’s Truth Social post last Tuesday night highlighting support for an open stablecoin loophole “represented more saber rattling than anything else,” adding that there is “a difference between saber rattling, policy advocacy, and the trajectory of legislation.” Last week, the bank rejected compromise version of the CLARITY bill calls for yield only being derivable from P2P payments, rather than idle balances, which in the firm’s view materially changes the calculus for main distribution node and the commercialization path for stablecoins, again favoring Circle Internet (CRCL) and disintermediating Coinbase (COIN). The firm, which would be adding to Coinbase shorts and remains long Circle, currently rates Coinbase a Sell with a $120 price target and Circle a Buy with a $125 price target.