CRCL Stock Outlook as FSB Warns G20 Policymakers of Cross-Border Stablecoin Risks

Circle (NYSE: CRCL) stock price is up slightly in pre-market trading today, mirroring the slight uptick across risk assets amid falling oil prices.

The slight gains come even as the Financial Stability Board (FSB) warns G20 policymakers of the lack of a solid regulatory structure in cross-border stablecoin usage.

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FSB Flags Cross-Border Stablecoin Risks

In a recent letter published by the FSB, the chair of the regulatory body, Andrew Bailey, noted that stablecoins are featuring prominently in fraud and other financial crimes, especially in countries with light regulatory frameworks.

The letter asked G20 members that are currently working on their stablecoin regulatory frameworks to focus on financial stability and how these frameworks can work effectively across the globe. Per Bailey, the current regulatory frameworks remain uncertain and undefined in most countries.

“Mechanisms for cross-border oversight, crisis management, accountability and cooperation in stress or insolvency remain immature or are not yet developed,” Bailey noted.

The FSB’s letter comes as Circle urges EU policymakers to change some provisions in the MiCA guidelines to include some of the largest global stablecoins, as earlier reported by CoinGape.

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Analyst Maps CRCL Stock Rally to $100 as Goldman Sachs Flips Bullish on Stocks

One analyst on X notes that CRCL stock price could be headed to $100 following the 6% rally seen between October 8 and 9 after Circle’s partnership with Tereina.

Per the analyst, the move towards $100 could occur if the crypto stock closes above the resistance at $90. He adds that a close above $100 could also pave the way for a bullish leg to $198.

The bullish outlook comes as Goldman Sachs flips bullish on stocks. The investment bank has upgraded equities to an overweight rating over three months based on improving valuations, strong earnings, and easing inflation.

However, Goldman Sachs notes that AI-related stocks will lead this recovery as they continue to outperform crypto stocks such as CRCL that are reeling from a lack of strong gains across the market.

CRCL Stock Bounces From Sell Zone as Buy Signal Emerges

CRCL stock price has bounced from the sell zone between $79 and $81. The shares closed above this zone on October 9, with bulls now eyeing another bullish leg to the upside. ‘

If the uptrend continues, CRCL stock will face the next resistance at $85. Closing above this resistance paves the way for a move towards $90.

The RSI line has also moved above the signal line on the one-day chart, creating a buy signal. However, the RSI line remains below 50 to suggest that the momentum is still favoring bears.

The AO bars that have turned green suggest that bears could be losing their grip, and if the sentiment improves during today’s trading, CRCL stock could move towards $90.