Circle Internet Corp. (CRCL) saw its shares drop sharply by 5.07% during intraday trading on Thursday, as regulatory concerns surrounding USD stablecoins weighed on investor sentiment.
The decline follows a speech by Wang Yongli, former Vice President of Bank of China, highlighting significant challenges facing USD stablecoins. These include potential reserve inadequacy due to fluctuating Treasury bond values, lack of unified reserve structures, and risks associated with decentralized finance (DeFi) protocols. Such regulatory uncertainties could impact Circle Internet Corp.'s operations, given its involvement in the stablecoin market.
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