Circle Stock Falls 15% as GENIUS Act Spurs Stablecoin Competition
Circle Internet Group Inc. (CRCL) stock dropped approximately 15%, closing at $222.65 on June 24, 2025, from the previous day’s high of around $264, ending a 750% rally since its June 4, 2025, initial public offering price at $31.
CRCL stock chart (Source: Yahoo Finance)
The decline was induced by Wall Street’s concern over increasing competition in the stablecoin market.
As of June 25, 2025, the stock was reported at $232.70 in pre-market trading, making a partial recovery. Circle’s market capitalization currently stands at $53.99 billion, a 15.49% decline in the past day, according to CompanyMarketCap.
Circle market cap (Source: CompanyMarketCap)
The year-high stock of $298.99 and year-low of $64.00 show its volatility since its June listing.
The stock was down 25% from Monday’s peak, suggesting a high near $296. With a 6.8% intraday decline that escalated following market close, a sign of a quick shift in investor confidence.
GENIUS Act Sparks Competition, Sinks Circle’s Stock
The stock price decline was primarily attributed to rising competition in the stablecoin market, fueled by the proposed approval of the GENIUS Act, which was passed by the Senate on May 21, 2025, and awaits House approval.
The bill is intended to provide regulatory clarity for stablecoins and could further expand the market but also invite new participants, ultimately challenging Circle’s dominance.
While the GENIUS Act makes legislative progress, a recent Bank for International Settlements (BIS) report warned of stablecoin risks to financial stability if not strongly regulated, further fueling a bearish sentiment.
Circle’s Partnerships Shine, But Rivals Cloud Future
Circle’s reported pre-market price of $232.70 on June 25, 2025, is proof that some investors see the price dip as a buying opportunity, while analysts foresee ongoing bearish pressure from declining interest rates and increased competition.
In 2024, the stablecoin issuer reported $1.68 billion in revenue but a 59.68% decline in net income to $18.11 million, though other reports stated a 41% drop from $268 million in 2023, showing source variances. These financial challenges reveal the vulnerabilities in Circle’s operating model.
Circle’s focus on mainstream business partnerships for growth in payments is promising but may be limited by a fragmented stablecoin market. While regulatory clarity may boost adoption, competition from FIUSD and others threatens USDC’s market position.
