Today Circle dropped nearly 20%.

Everyone is talking about it, but hardly anyone actually understands what's happening.
New signals that the Clarity Act may not allow profit transfers is a classic sell-off event. Insiders got ahead of it over the past 6 weeks while $CRCL tripled from the bottom.
But here's what everyone is missing: this is extremely positive for Circle.
Their entire business model is built on retaining profits generated from their $USDC supply. The Clarity Act basically gives them a legal barrier to maintain that model, while conveniently allowing them to say they'd love to transfer profits but regulators won't let them.
The subsequent price drop was accelerated by news that Tether is conducting a comprehensive audit, which threatens Circle's position in the US and Western markets as a more tightly regulated, more trustworthy alternative to $USDT.
The race between Tether and Circle just became a lot more interesting.
However, I believe the Clarity Act will ultimately allow both companies to thrive, so the compete for first and second place doesn't matter to me over the next few years.