Mizuho: ClarityAct long-term or intensified stablecoin competition will have a negative impact on Circle

Analysts at Mizuho said that if the US Crypto Market Structure Bill ClarityAct is passed, although it may benefit the digital asset industry as a whole, the long-term impact on Circle may be negative. The reason is that regulatory clarity will attract more large institutions to enter the stablecoin market, further accelerate the commodification of stablecoin, and erode the revenue space of Circle's USDC. Mizuho believes that the main pressure on Circle in the near future comes from OpenUSD. The stablecoin project is supported by an alliance of more than 140 financial, technology and crypto companies, including Visa, Mastercard, Stripe, BlackRock and Coinbase. Unlike Circle's model, where it retains approximately 38% of USDC's reserve revenue, OpenUSD adopts a "pass-through" model that allocates nearly all reserve revenue to distributors, retaining only a small amount of management fees. Analysts also pointed out that Coinbase, as the largest distributor of USDC and also supports OpenUSD, may gain stronger bargaining power when renegotiating a revenue sharing agreement with Circle in the future. The distribution agreement between the two parties could be renegotiated as early as next month.