Circle Downgraded to ‘Sell’ by Compass Point After Trump Signs Stablecoin Bill

Key Points

1. Shares of Circle (CRCL) fell 8.23% on Tuesday to $198.31, extending a 17.47% decline over the past month from its all-time high of $298.99.

2. Compass Point analysts downgraded CRCL to 'sell' and set a price target of $130, predicting a further 34% drop due to anticipated competition in the stablecoin market.

3. The analysts expect mainstream fintechs and banks to launch competing stablecoins in the second half of 2025, leveraging wider distribution networks.

4. Circle completed its IPO in early June, raising $1.1 billion at $31 per share, with the stock nearly quadrupling on its first trading day.

5. The GENIUS Act, the first major U.S. crypto legislation, was cited as a factor in the downgrade, with analysts expecting CRCL to retrace some of its recent gains post-enactment.