Analyst predicts 60% upside for Circle stock on bill compromise
MAJOR
2026
USDC
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A compromise on the Clarity Act seems to be emerging as per the Punchbowl News report from May 1.
A tussle between the banking and crypto industries has been going on for months over the provision regarding stablecoin rewards.
Related: Explained: What is a stablecoin?
While the banking industry fears these rewards would entice users to close their savings accounts, the crypto industry thinks the banks are being anti-competitive.
But the latest draft of the legislation, finalized by Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), finds a compromise.
Though it bans rewards on passive stablecoin holdings that are “economically or functionally equivalent” to deposit interest, it allows rewards for stablecoin activities like trading, transactions or staking.
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Bernstein shares rating on Circle following compromise
Circle Internet Group Inc. (NYSE: CRCL) is one of the well-recognised publicly listed crypto companies. Its most popular offering is the USDC stablecoin, which is pegged 1:1 to the U.S. dollar.
As per DeFiLlama, it has a market cap of $78.81 billion and accounts for 24% of the total stablecoin market cap at press time.
Circle founder and CEO Jeremy Allaire welcomed the latest development on the Clarity Act, saying stablecoins represent the "highest utility form of money ever invented" and incentives will only drive their adoption.
Stablecoins represent the highest utility form of money ever invented — incentives that encourage their greater usage and utility will only amplify their velocity and adoption. The entire digital asset industry, which now very much includes banks of all sizes and stripes, will… https://t.co/pcYh0H6nX4
— Jeremy Allaire - jerallaire.arc (@jerallaire) May 2, 2026
Following the news of the new CLARITY Act draft, the CRCL stock jumped as much as 20% to close at $119.53 on May 4. But it was trading 4.30% lower at $114.39 at press time.
Investing.com reported that Bernstein analyst Gautam Chhugani reiterated an "Outperform" rating and a price target of $190 on the Circle stock following the release of bipartisan compromise text on the CLARITY Act.
Given the closing price of 119.53 on May 4, Bernstein's price target still represents an upside of 58.95% on the Circe stock.
Related: Over 100 crypto firms call on Senate to move forward with Clarity Act
