Bank Plans on CLARITY Act Send Circle and Coinbase Shares Lower
Circle (CRCL) and Coinbase (COIN) shares both fell more than 3% after reports that JPMorgan Chase and a consortium of major banks were moving toward issuing their own stablecoins following the advancement of the CLARITY Act. The news focused attention on the potential for traditional lenders to compete with crypto-native issuers such as Circle and Tether. The selloff followed a Wall Street Journal report that U.S. banks are warming to stablecoins as nonbank issuers expand, raising concerns about competition in token-based payments. JPMorgan Chase has explored a potential stablecoin but no product is under development yet. A separate consortium of over a dozen major banks plans for a commercial-focused stablecoin covering the U.S. dollar and other G7 currencies. The BankChain Alliance also announced an industry-owned blockchain network to enable modern payment rails, with planned use cases including treasury management, supply-chain financing, tokenized deposits, smart payments, and automated settlement.
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Topics: banks Circle (CRCL) CLARITY Act Coinbase (COIN) stablecoins