Circle Stock Tumbles 20% on Newest Clarity Act Draft | CoinDesk Daily

The proposed Clarity Act draft has triggered a significant market sell-off for Circle and Coinbase by threatening to ban stablecoin rewards, specifically targeting the pass-through interest model. While Circle shares plummeted 20%, analysts suggest the reaction may be overstated given the company's year-to-date gains and Tether’s simultaneous move toward a Big Four audit. In the derivatives market, a massive $14.16 billion Bitcoin options expiry on Derabit points toward a $75,000 "max pain" price, with institutional activity suggesting measured bullishness despite global tensions. Meanwhile, new research reveals that retail participants in prediction markets are performing worse than those on traditional sportsbooks, seeing median returns of negative 8%. This disparity stems from the lack of player limits in crypto markets, which leaves retail traders directly exposed to profitable "whales" and professional market makers who capture the majority of gains.