On August 4, Mizuho Securities analyst Dan Dolev, in an interview with Bloomberg, stated that he would maintain his underweight rating on Circle. He believes Circle’s only current upside catalyst is potential earnings growth from rising interest rates; however, from a fundamental perspective, multiple factors are deteriorating: the likelihood of the CLARITY Act passing this year is low, Bitcoin’s price remains weak, and the OpenUSD consortium—comprising over 140 banks and financial institutions—may pose competitive pressure on USDC. Dolev noted that he is not bearish on the stablecoin sector as a whole, as stablecoins do offer genuine utility; however, the issue lies in whether Circle’s business model can be sustained over the long term.
Mizuho Analyst: The CLARITY Bill Is Unlikely to Pass This Week or This Year
MarsBitShare
Summary
On August 4, Mizuho analyst Dan Dolev told Bloomberg that the CLARITY Bill is unlikely to pass this week or this year. He maintained a sell rating on Circle, citing weak Bitcoin news and deteriorating fundamentals. Dolev also pointed to increasing on-chain developments surrounding the OpenUSD coalition as a potential threat to USDC.
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