Bernstein analysts believe the market has overreacted to stablecoin regulations in the Clarity Act draft. They note that while the draft prohibits deposit-like rewards, exception clauses within it may still allow platforms like Coinbase to offer activity-based incentives. This legislative proposal, championed by Senators Tillis and Allsbrook, highlights banking industry concerns about deposit competition, as expressed by American Bankers Association (ABA) executives. Meanwhile, Tether's new audit agreement has sparked market speculation about its entry into the US market, intensifying competitive pressures. Circle's stock price tested support near $105 after a sharp decline, while Bitcoin price briefly fell to around $69,000.