New York-Approved Circle, Stock Price Plunges 4%...Target Price Also 'Drops' to $140

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Circle (CRCL), the issuer of USD Coin (USDC), secured a trust company license from New York financial authorities, enhancing its regulatory credibility. However, its stock price paradoxically fell by more than 4%.

According to cryptocurrency media outlet Watcher.Guru on August 2 (local time), the New York State Department of Financial Services (NYDFS) granted Circle a trust company license. With this license, Circle will operate its business under the supervisory framework of New York financial authorities, which have global digital asset regulatory standards.

Circle had previously received approval from the U.S. Office of the Comptroller of the Currency (OCC) in July to directly manage reserve assets and provide digital asset custody services to institutional investors. With the addition of the New York trust company license, the regulatory foundation for USDC's reserve asset management and institutional business has been further strengthened.

Jeremy Allaire, co-founder and CEO of Circle, stated that the New York trust company license was a long-standing goal to achieve regulatory clarity. He explained that New York is home to Circle's global headquarters, and this license positions USDC within a highly credible regulatory framework as digital dollars emerge as a core component of the global financial system.

Despite the positive regulatory news, Circle's stock price dropped by more than 4% on July 31. Amid continued cautious sentiment from Wall Street, Circle is set to announce its Q2 2026 earnings on August 5. Investment and research firm Bernstein lowered Circle's target price by 25%, from the previous $190 to $140, ahead of the earnings announcement.

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