Svmuu News: Mizuho analysts stated that if the U.S. cryptocurrency market framework bill, the “Clarity Act,” is passed, while it may be generally beneficial for the digital asset industry, the long-term impact on Circle could be somewhat negative.The reasoning is that regulatory clarity will attract more large institutions into the stablecoin market, further accelerating the commoditization of stablecoins and eroding the revenue potential of USDC, which is operated by Circle.
Mizuho believes that Circle’s primary source of pressure recently has come from Open USD. This stablecoin project is backed by a consortium of more than 140 financial, technology, and crypto companies, including Visa, Mastercard, Stripe, BlackRock, and Coinbase.Unlike Circle’s model, which retains approximately 38% of USDC reserve earnings, Open USD employs a “pass-through” model, distributing nearly all reserve earnings to distributors while retaining only a small management fee.
Analysts also noted that Coinbase, as the largest distributor of USDC and a supporter of Open USD, may gain stronger bargaining power when renegotiating its revenue-sharing agreement with Circle in the future. The distribution agreement between the two parties could be renegotiated as early as next month.