Circle's Stock Takes a Hit After Trump's Crypto Law

Circle Internet Group, the company behind the popular USDC stablecoin, is facing some tough times. A big change in the crypto world has left its stock in a tricky spot. President Donald Trump recently signed a new law called the GENIUS Act. This law is all about regulating stablecoins, which are digital currencies tied to real-world assets. While this law is good news for the crypto industry, it might not be so great for Circle in the short term. Ed Engel, an analyst from Compass Point, thinks Circle's stock could drop. He changed his rating from neutral to sell and lowered his price target from $205 to $130. That's a big drop! He believes investors might sell their shares after the excitement of the new law wears off. Even though USDC could be a big part of the financial system, Engel is not so sure about Circle's long-term plans.Circle's stock has seen a huge rise since it started trading in June, up by 597%. But Engel thinks there could be more competition coming. Other financial tech companies and banks might launch their own stablecoins in the second half of 2025. This could make it harder for Circle to keep its market share and high valuation. Engel also pointed out that USDC is already connected to 24 different blockchains. There's a limit to how many more integrations Circle can do, which could slow down its income from this area. He expects this income to drop in 2026 and beyond. So, while USDC has a lot of potential, Circle might face some challenges ahead.