Circle Internet Group (CRCL) shares fell approximately 30% from recent highs. The stock reached an intraday low of $98 on May 28.
Rising competition from traditional financial institutions triggered the sell-off. This shift follows the May 27 launch of SoFiUSD by SoFi.
SoFiUSD represents the first stablecoin issued by a U.S. national bank directly on a banking platform. The 2025 Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act authorized this issuance.
The GENIUS Act created a federal framework for banks and regulated entities to issue stablecoins. Investors fear this legislation collapses the regulatory moat that previously benefited crypto-native firms like Circle.
Established players including SoFi and JPMorgan now threaten the market-leading position of Circle’s USDC stablecoin.