Circle falls 20% on draft Clarity Act language that could bar stablecoin yield

Circle shares fell about 20% to close at $101 on March 24, their worst session since going public, after a revised draft of the CLARITY Act raised the prospect of a ban on stablecoin yield. The draft language would bar yield paid directly or indirectly, including anything economically or functionally equivalent to interest. The selloff put USDC's reward-driven distribution model in question.

• CRCL closed at $101, down about 20%, its worst day since the IPO
• Draft bars yield paid "directly or indirectly" and anything economically or functionally equivalent to interest
• Traders were weighing how the bill would treat stablecoin rewards paid by platforms