COIN and CRCL Stock Outlook as ECB Echoes US Banks’ CLARITY Act Warning on Stablecoins

The executive board member of the European Central Bank, Piero Cipollone, warns that stablecoins have the potential to affect bank deposits, echoing the same concerns raised by US banking groups who are calling for changes to the CLARITY Act. These concerns continue to weigh on Coinbase (NASDAQ: COIN) and Circle (NYSE: CRCL) stocks, whose prices have dropped to multi-week lows.

COIN stock price is down by 1.75% today, July 17, to trade at $157 at the time of writing, while CRCL shares traded at $60 after dropping by 6% in five trading days.

ECB’s Cipollone Warns Stablecoins Are a Risk to Bank Deposits

While speaking at the Federation of Cooperative Credit Banks in Rome on July 17, Cipollone noted that if people continued to use stablecoins, they would become less interested with making deposits with banks.

According to the ECB board member, the EU needs to fast-track the use of its digital euro that will reduce the use of stablecoins and preserve the roles that banks play in the financial system.

His remarks come shortly after US banking groups sent a letter to the US Senate saying that Section 404 of the CLARITY Act needs to be revised so that stablecoin providers are barred from offering yields, a move that pushed CRCL stock down.

The banks say that failing to revise this section could make small banks to collapse because of deposit flight.

Still, the odds of CLARITY crypto Act being approved before the August recess have surged to 69% after President Trump met with US senators on July 16 to discuss the crypto bill.

The CLARITY bill will likely go to the Senate floor this month for voting, as concerns grow that the bill might delay until 2030 if it does not pass before the mid-term elections in November.

COIN Stock Extends Losses as Analysts Reiterate Sell Ratings

COIN stock price has dropped to $157, and now analysts are warning that the stock is facing more headwinds as CRCL and other crypto stocks move lower.

The CMF reading of -0.05 supports a bearish outlook on Coinbase shares. It suggests that the selling pressure is more than the buying pressure.

The MACD line that is negative also warns that the momentum is favoring bears. If buyers remain hesitant, COIN stock could drop to the psychological support of $150.

The drop could extend beyond $150 because Compass Points warns that COIN might touch $140 if the CLARITY Act does not pass. The bank noted that this bill will affect COIN stock more than the Q2 earnings that will come out on July 30 will.

CoinGape also reported that Openheimmer trimmed its COIN stock target to $209 because of weak trading volumes on the Coinbase exchange.

CRCL Stock Crashes to 6-Month Low

CRCL stock price traded at the psychological support of $60 at the time of writing. The stock had dropped to $58 on July 17 during pre-market trading, marking its lowest price since February 2026.

The MFI reading of 42 suggests that the momentum is favoring bears and CRCL could continue dropping despite ARK Invest’s recent $17M purchase of Circle shares.

However, the ADX line that is dropping suggests that the downtrend is also becoming weak. As such, the shares could find support at $60, and if a reversal occurs, they might move to the obstacle at $65.

But analysts at Mizuho do not see such gains occurring and have instead forecast that CRCL stock price might drop to $50.

The analysts have warned that the new OpenUSD stablecoin might take away Circle’s share in the stablecoin market, and this could pull the stock price down.