New Legislation Creates A Trillion Dollar Opportunity In Circle

(8min)

Summary

  • The GENIUS Act paves the way for stablecoin regulation, positioning Circle and USDC as key beneficiaries of this legislative clarity.
  • Stablecoins, especially USDC, could revolutionize global payments, offering instant settlement, low fees, and broad accessibility—potentially capturing a multi-trillion-dollar market.
  • Circle's dominant transfer volume and regulatory compliance give it a strong edge, but risks include heavy revenue sharing with Coinbase, competition, and yield dependency.
  • Despite a high valuation and notable risks, I rate CRCL a buy and recommend accumulating shares on dips for long-term exposure to this transformative sector.
  • This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More »

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Thesis Summary

Congress just passed the GENIUS Act, laying the groundwork for stablecoin regulation and implementation.

Circle (CRCL), which recently went public and is the company behind USDC (USDC-USD), one of

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This article was written by

24.22K Followers

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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