Several digital currency-related stocks, including Circle Group (CRCL Quick QuoteCRCL - Free Report) and Coinbase (COIN Quick QuoteCOIN - Free Report) , faced notably adverse action in today’s session, with investors reassessing their outlooks after proposed legislation, namely the Clarity Act, would negatively affect both.

Specifically, a ‘yield restriction’ provision seeks to prohibit stablecoin issuers and platforms from paying interest or rewards on held balances in a manner that mimics traditional bank deposits, which would be a blow to both companies.

Though the issue is more relevant to Circle, it’s still a big deal for Coinbase as well because a significant portion of its revenue now comes from its partnership with Circle and the yield it offers customers on stablecoin holdings.

If these rewards are restricted to activity-based incentives rather than passive hold rewards, both companies face issues where their most stable and profitable cash-like products become less attractive.

Coinbase shares have lagged behind the S&P 500 so far in 2026, with CRCL shares still up by a strong 25% even after the big drop.

Image Source: Zacks Investment Research