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      Circle and Coinbase Shares Decline Amid Bank Plans for Stablecoins

      Shares of Circle and Coinbase experienced a decline of over 3% following reports that JPMorgan Chase and a consortium of major banks are advancing plans to issue their own stablecoins. This development raises concerns about competition between traditional banks and crypto-native issuers such as Circle and Tether. The selloff was triggered by a Wall Street Journal report indicating that U.S. banks are increasingly interested in stablecoins as nonbank issuers expand their presence in the market.

      The consortium, which includes Bank of America, Wells Fargo, and Santander, is working on a commercial-focused stablecoin that would cover the U.S. dollar, euro, and other Group of Seven currencies. Although discussions at JPMorgan are still preliminary and no product is currently in development, the movement towards bank-issued stablecoins signals a significant shift in the financial landscape.

      In the context of these developments, the Digital Asset Market Clarity Act, or CLARITY Act, remains pending in the Senate, with unresolved issues regarding the treatment of stablecoin yield. Coinbase has been a strong advocate for the CLARITY Act, urging lawmakers to advance the legislation, which could impact the regulatory framework for stablecoins and the broader cryptocurrency market. As banks explore on-chain payment solutions and tokenized deposits, the future of stablecoin competition is becoming increasingly complex.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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