10x Research: Circle Stock Price Drops Approximately 20% in a Single Day, Will Re-evaluate "Long Circle Short Certain CEX" Strategy

Gate News, March 25 — 10x Research analysis indicates that the battle over stablecoin economics has begun between Circle and a certain CEX. Circle’s stock price recently dropped about 20% in a single day, with some investors attributing this to the uncertainty caused by the CLARITY Act. However, others believe the bill could present structural benefits. Circle supports a federal-level stablecoin regulatory framework in exchange for institutional legitimacy and long-term growth potential for USDC, while the CEX focuses more on short-term profits through yield-bearing balances, creating a business model conflict. Under the regulatory framework, Circle may abandon some high-margin distribution models but will gain more sustainable “regulatory certainty,” which could promote institutional adoption, global settlement scenarios, and deeper integration with traditional financial systems. 10x Research further notes that, given the current market environment, they will reassess the previous “long Circle, short CEX” strategy and evaluate whether it remains effective.