CoinDesk Podcast Network Circle Stock Tumbles 20% on Newest Clarity Act Draft | CoinDesk Daily
Mar 25, 2026
Shares of major crypto firms plunged after a draft U.S. bill threatened stablecoin yield structures. A giant Bitcoin options expiry and signs of institutional positioning in options markets were discussed. Research on retail losses in prediction markets was highlighted. The episode also covered a major stablecoin issuer hiring auditors to shore up confidence.
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Clarity Act Threatens Stablecoin Reward Model
- Circle stock dropped 20% after a Clarity Act draft would ban rewards that are economically equivalent to interest on stablecoin balances.
- The draft would block Circle's pass-through model where interest on USDC backing assets funds Coinbase user rewards, squeezing revenue mechanics.
Massive Bitcoin Options Expiry Could Act As Price Magnet
- Deribit will sell $14.16 billion in Bitcoin options expiring this Friday, representing nearly 40% of the exchange's open interest.
- A $75,000 max pay price and compressed implied volatility could act as a price magnet as market makers hedge large positions.
Retail Traders Losing On Prediction Markets
- Research shows retail users lose more on crypto prediction markets than on regulated sports books, with median returns at negative 8% versus negative 5%.
- Only whales trading over $500,000 post positive returns, since prediction markets don't limit professional players like sportsbooks do.