Mizuho: The passage of the Clarity Act will intensify stablecoin competition and have a negative impact on Circle

Mizuho analysts stated that if the US Clarity Act passes, regulatory clarity will attract large institutions into the stablecoin market, accelerating commoditization and eroding Circle's USDC revenue share. Mizuho believes that Circle faces pressure from Open USD, a project supported by an alliance including Visa, Mastercard, Stripe, BlackRock, and an exchange. Open USD adopts a model where reserve earnings are distributed to distributors, differing from Circle's model of retaining 38% of USDC reserve earnings. As the largest distributor of USDC and a supporter of Open USD, the exchange may gain stronger bargaining power when renegotiating revenue-sharing agreements with Circle next month.