- ARK added $20.45M in Circle shares despite a sharp 15% intraday decline in CRCL.
- Draft Clarity Act limits stablecoin yield, pressuring Circle’s USDC business outlook.
- USDC wallet freezes and Tether audit news added pressure on Circle sentiment.
Circle Internet Group shares moved lower after emerging U.S. legislative language signaled tighter limits on stablecoin rewards. Despite the decline, Cathie Wood’s ARK Invest bought $20.45 million worth of CRCL shares.
The move shows institutional confidence even as regulatory uncertainty pressures stablecoin issuers.
ARK Buys Circle Stock During CRCL Decline
Cathie Wood’s ARK Invest increased its exposure to Circle during the sell-off. Daily trade disclosures for March 24, 2026, show the firm purchased 161,513 shares of Circle, valued at approximately $20.45 million.
The buy follows earlier accumulation activity, suggesting ARK continues to build a position despite short-term market weakness.
Circle shares fell around 15% during the day after draft provisions tied to the proposed Clarity Act suggested a ban on yield payments for simply holding stablecoins. The structure allows only activity-based incentives, removing a feature that had been associated with expanding stablecoins beyond payment use cases.
Stablecoin Yield Rules Pressure Circle
The decline followed draft provisions tied to the proposed CLARITY Act. The language suggests restricting yield payments for simply holding stablecoins. Such limits could directly affect Circle’s USDC business model.
Stablecoin yield has been a key driver for adoption, and removing it may reduce incentives for holding USDC.
Separately, on-chain investigator ZachXBT reported that Circle froze USDC balances across 16 hot wallets linked to businesses associated with an ongoing U.S. civil case. The disclosure highlighted operational controls in centralized stablecoin systems, allowing issuers to restrict access to funds under legal direction.
At the same time, competitive developments added to the backdrop. Tether, a major issuer of stablecoins, confirmed it has engaged a Big Four accounting firm to complete its first full financial audit. The move introduces additional transparency measures within the sector.
Portfolio Shifts Across ARK ETFs
Alongside the Circle purchase, ARK executed several sales. The firm sold 190,100 shares of Twist Bioscience, totaling about $8.46 million, marking its largest divestment of the day. It also reduced positions in Roku, selling 54,640 shares for $5.34 million, and in Teradyne, offloading 18,620 shares for $5.66 million.
Additional transactions included the sale of 41,064 shares of Bullish (BLSH) across ARK funds for $1.62 million, along with smaller reductions in Adyen NV, Discovery Ltd, Taiwan Semiconductor Manufacturing, and Veracyte.
Related: Circle (CRCL) Stock Drops 18% While USDC Holds $1 Peg
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Source: https://coinedition.com/cathie-wood-ark-buys-circle-stake-despite-crcl-stock-decline/
