A draft of the U.S. Clear Act proposing a ban on yields for passive stablecoin balances has led to a 20% drop in Circle (CRCL) shares. However, analysts from Citigroup and Bernstein assert that these restrictions pose no fundamental threat to Circle's business model. Citi analyst Peter Christiansen's team highlighted that Circle's core revenue remains unaffected as it has already shifted most reserve earnings to partners like Coinbase, avoiding direct yield payments to token holders. Citi maintains a high-risk rating on Circle with a $243 price target. Bernstein analysts, led by Gautam Chhugani, argue that the market's reaction is based on a misunderstanding. The proposed legislation targets Coinbase's 3.5% yield product on USDC, not Circle itself. Circle's $2.64 billion reserve income for fiscal year 2025 underscores its stable business model. Bernstein rates Circle as Outperform with a $190 price target.