Bernstein Says Circle Growth Defies CLARITY Act, Sets $140 Target

• Bernstein maintains an Outperform rating and $140 target for Circle stock.
• USDC supply grew $1.7 billion, supporting Circle’s stablecoin growth outlook.
• Bernstein says Circle’s growth can continue regardless of the CLARITY Act outcome.

Bernstein maintained its Outperform rating and $140 price target for Circle, despite uncertainty surrounding the CLARITY Act. The firm said rising USDC adoption and stablecoin activity can sustain Circle’s growth regardless of the legislation’s outcome. 

USDC Growth Strengthens Circle Outlook

Bernstein analysts led by Gautam Chhugani said Circle’s growth cycle can continue without passage of the CLARITY Act. The firm maintained its $140 price target, implying roughly 59% upside from Circle’s $87.98 Friday closing price.

The outlook follows renewed expansion in USDC supply after several months of limited growth. 

According to Bernstein, USDC supply increased by approximately $1.7 billion over the past week.

The analysts attributed Circle’s growth prospects to several expanding areas across digital finance. These include stablecoin payments, tokenized assets, blockchain-based capital markets, and emerging agent-driven transactions.

USDC also continues gaining utility across decentralized finance and tokenized markets. Bernstein noted that the stablecoin serves as collateral across DeFi, tokenized equities, real-world-asset perpetual futures, and prediction markets.

Meanwhile, adjusted stablecoin transaction volumes are growing rapidly across the broader market. Bernstein estimated that adjusted activity reached $11 trillion during 2025 and is tracking toward $17 trillion annually through July.

That represents approximately 60% year-over-year growth, excluding bots and high-frequency trading activity. Consequently, Bernstein sees expanding stablecoin usage as a significant driver for Circle’s longer-term growth.

THE BLOCK: Bernstein analysts rate Circle "Outperform" with a $140 target, saying its growth cycle does not depend on Clarity Act progress.

The analysts cited $1.7 billion in USDC supply growth over the last week and expanding market share in stablecoin transaction volumes.… pic.twitter.com/zZvLZ1U9Uo

— The Block (@TheBlockCo) August 24, 2026

Circle is also developing infrastructure for automated payments through its Agent Stack platform. The service reportedly supports more than 900 paid services, while USDC accounts for roughly 99% of x402 agent-payment volume.

CLARITY Act Outcome Remains Secondary

Bernstein argued that Circle’s investment case does not depend on Congress passing the CLARITY Act. The legislation remains a major regulatory catalyst, with a Senate vote expected on September 15.

The analysts said regulatory intervention from the SEC and CFTC could accelerate if lawmakers reject the legislation. Therefore, Bernstein expects Circle to continue benefiting from regulatory developments under either outcome.

Stablecoin rewards remain among the legislation’s important considerations for issuers and financial institutions. Without passage, third-party reward programs would continue under existing arrangements.

However, passage could connect stablecoin rewards more directly with user activity. Bernstein considers either scenario manageable for Circle and its USDC business.

Competition nevertheless remains an important risk for Circle’s valuation. Rival stablecoin models, including consortium-based approaches, could pressure margins and challenge Circle’s market position.

Despite those concerns, Bernstein continues seeing substantial upside from expanding stablecoin adoption. Its $140 target therefore reflects confidence that Circle’s growth can progress independently of legislative timing.