"Circle built USDC into a $78 billion stablecoin largely on the back of its reserve income model. 95% of its Q4 2025 revenue came from interest earned on the Treasury bills and cash backing every USDC token in circulation."
"If the CLARITY Act bans passive yield and anything economically equivalent to interest, that revenue-sharing pipeline between Circle and Coinbase—which accounts for about 20% of Coinbase's total revenue—could be disrupted."
"USDC's growth has been driven by trading, payments, and collateral demand, not just yield. USDC processed over $18 trillion in on-chain volume in 2025, ahead of Tether by transaction count."
Circle developed USDC into a $78 billion stablecoin, primarily through a model offering yield on holdings via Coinbase. The proposed CLARITY Act could ban yield on stablecoin holdings, impacting Circle's revenue model. Currently, 95% of Circle's revenue comes from interest on reserves backing USDC. If the ban passes, the revenue-sharing with Coinbase, crucial for attracting users, may be disrupted. However, some believe USDC's growth is driven by trading and payments, suggesting the impact may not be permanent.
Read at 24/7 Wall St.
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