Tether disclosed it has hired a Big Four accounting firm to audit its USDT reserves, signaling enhanced transparency and regulatory readiness.

The USDT audit initiative aims to bolster institutional confidence and position Tether in competition with USDC.

Shares of Circle Internet Group and Coinbase slid sharply after reports that a proposed U.S. bill, the CLARITY Act, would bar yield offerings on stablecoins and prohibit rewards equivalent to interest.

Circle had rallied about 170% since early February, leaving the stock vulnerable to negative headlines as regulatory risk intensified.

Circle’s CRCL fell up to 18% on the draft, with the legislation targeting balance-based yields and potentially banning rewards that are economically or functionally equivalent to interest.

Analysts are re-evaluating risk, cost of capital, and compliance obligations for stablecoin issuers in light of the evolving regulatory framework.

The act would ban yield that is economically or functionally equivalent to interest, but may permit activity-based rewards linked to user activity (loyalty, promotions, subscriptions) if not deemed equivalent to interest.

The proposal would allow certain activity-based rewards while blocking pass-through yields tied to holding stablecoins.

Specifically, programs tied to user activity such as loyalty or promotional offerings could be allowed if they are not considered equivalent to interest.

Some analysts, including Citi’s Peter Christiansen, maintain a Buy rating on COIN with a price target near $400, viewing COIN as a beta play on regulatory clarity and potential long-term gains despite near-term headwinds.

There is a split among analysts on the impact, with some seeing significant upside for COIN and Circle only if yield-based revenue remains restricted, while others foresee reduced upside without such revenue streams.

The bill remains under negotiation and could change before any passage; support from the Trump administration could influence momentum, but passage is uncertain and yield restrictions could stall progress.