Circle Stock Crashes 17% as Rival Tether Set To Complete First Full Audit For USDT

The Circle stock has crashed by as much as 17% today, marking the largest daily decline since June 2025. This follows Tether’s announcement of plans for USDT’s first audit, which experts have explained is bearish for the USDC issuer, Circle.

Circle Stock Suffers Largest Daily Decline This Year

The Circle stock is down over 16% today, dropping to as low as $103 from an opening price of $125, according to TradingView data. This marks the crypto stock’s largest daily decline since June 2025, when the USDC issuer went public in the U.S.

The CRCL decline follows Tether’s announcement that it has signed a ‘big four’ auditing firm to complete the first full audit for its USDT stablecoin. The stablecoin issuer noted that this move is “slated to be the biggest ever inaugural audit in the history of financial markets.”

It is worth noting that Tether has in the past faced scrutiny over the reserves for its USDT stablecoin, with speculations that the stablecoin wasn’t fully backed. This move is also significant, as it could erode USDC’s regulatory edge, which explains the selling pressure the Circle’s stock is facing today.

USDC currently ranks as the largest GENIUS-Act compliant stablecoin. However, that could change as the audit could pave the way for USDT’s approval under the GENIUS Act framework. In the release, Tether also hinted at plans to operate the stablecoin in compliance with the U.S. regulatory framework for stablecoins.

“By formally engaging a Big Four audit firm, Tether is taking one of the most important steps, strengthening its position as the global leader in transparency, assurance, and regulatory readiness,” the release stated. Meanwhile, it is worth noting that the Circle stock remains one of the stocks to watch amid the ongoing U.S.-Iran war, which has put pressure on risk assets.

Experts Give Take On CRCL’s Outlook

Market expert Altcoin Sherpa warned that the Circle stock could still drop lower soon. This came as he noted that it was one of the best-performing stocks recently, but that Tether’s announcement of the first full audit suggests they are probably considering a U.S. IPO. “This is bearish CRCL, and this 1 probably goes even lower soon,” he said.

$CRCL 1 of the best stocks recently and was held up with the CLARITY bill getting sorted but Tether announcing an audit means they’re probably looking to IPO. This is bearish crcl and this 1 probably goes even lower soon. pic.twitter.com/3QQSbMHIP4

— Altcoin Sherpa (@AltcoinSherpa) March 24, 2026

Market strategist Shay Boloor noted that CRCL was also crashing due to the latest development regarding the CLARITY Act. As CoinGape reported, the stablecoin yield language in the crypto bill is largely “restrictive,” as it places a broad ban on stablecoin rewards and permits them only for transactions that are not equivalent to bank deposit interest.

Boloor noted that this weakens a key part of the bull case for the Circle stock by making it harder for USDC to evolve from a payments utility into a real store-of-value product. It is worth noting that the GENIUS Act already banned stablecoin issuers from paying yields on stablecoin balances.