Circle Internet Group (CRCL) shares retreated 4.7% in Tuesday's pre-market session, declining from Monday's $97.42 closing price to $92.81, erasing gains from the previous day's trading.
The pullback reflects uncertainty surrounding a Senate procedural vote on the Digital Asset Market Structure Clarity Act, scheduled for 2:15 PM ET Tuesday. The measure requires 60 affirmative votes to advance, a threshold market observers view as increasingly difficult to meet.
Polymarket odds for passage have dropped sharply from more than 80% in early 2026 to approximately 16-19% as of Tuesday morning. Three areas remain disputed between legislators: ethics requirements, DeFi developer accountability, and limitations on stablecoin interest payments.
The stablecoin yield restrictions carry particular significance for Circle, which generates substantial revenue from reserves backing its USDC stablecoin. Any limitations could impact the company's core revenue stream.
Goldman Sachs raised its CRCL price target to $92 while maintaining a Neutral rating, offering limited near-term optimism. Coinbase (COIN) shares similarly declined in pre-market activity, suggesting broader weakness across cryptocurrency-related equities stems from collective regulatory uncertainty rather than company-specific issues.
Separately, Ark Invest disclosed that it sold approximately 142,350 CRCL shares across two investment vehicles on Monday, totaling roughly $13.8 million based on closing valuations. The divestment occurred while the stock gained 7.53% for the session. Ark also reduced positions in Coinbase and Bitcoin-related holdings, citing portfolio management guidelines that cap individual holdings at 10% of fund assets.
The Federal Open Market Committee rate announcement scheduled for Wednesday adds to market pressure, with a 25-basis-point increase widely expected.
