GateUser-77ae54ae

CRCL stock is declining approximately 19%, with the direct trigger being expectations of restrictions on stablecoin yield mechanisms in the CLARITY Act. This requires examining the stablecoin business model itself.
The core profit structure of stablecoins is currently not complicated. Essentially, it involves deploying user-deposited fiat assets into low-risk assets like short-term US Treasury bonds to capture interest rate spreads.
Issuers like Circle do not distribute this revenue to users but retain it as company income, which has been the primary profit source for USDC over the long term.