Bernstein Sees Circle Stock at $140 as USDC Growth Defies CLARITY Act Uncertainty

• Bernstein maintains an Outperform rating and $140 target for Circle stock, implying roughly 59% upside from its recent $87.98 close
• USDC supply jumped $1.7 billion in one week after months of stagnation, while Circle’s Q2 data showed USDC circulation and transaction activity continuing to grow
• Bernstein says Circle’s growth can continue even without the CLARITY Act, with stablecoin payments, tokenization and AI-agent payments emerging as longer-term catalysts

Circle stock is back in focus after a fresh bullish call from Bernstein, but the interesting part of the report has little to do with a single piece of legislation. The firm believes Circle’s next growth phase can continue even with uncertainty around the CLARITY Act. At the same time, USDC supply has started moving higher again after months of stagnation. This gives investors a more tangible sign that demand for Circle’s stablecoin may be picking up.

Also Read: SPCX Stock Forecast: 33 Analysts See 69% Upside as SpaceX Takes Nvidia AI Into Orbit

Bernstein Sticks With $140 Circle Stock Target

Bernstein reiterated its Outperform rating and $140 price target for Circle Internet Group, which represented about 59% upside from the stock’s $87.72 close on August 24. The call comes as Circle shares recover from a sharp pullback following their post-IPO surge.

The firm sees the stablecoin market as the bigger story. Bernstein expects Circle’s growth to benefit from expanding stablecoin payments, tokenized financial markets and newer uses such as AI-agent payments.

The clearest sign of renewed momentum may be sitting inside the USDC numbers. Bernstein noted that USDC supply increased by about $1.7 billion in a single week after roughly six months of sideways decline. The stablecoin is also increasingly being used as collateral across decentralized finance, tokenized assets and prediction markets.

Circle’s own second-quarter results show the bigger trend. USDC in circulation reached $73.3 billion at the end of June. It is up 19% year over year, while on-chain transaction volume jumped 151% to $14.8 trillion.

Also Read: Bitcoin Price Hits $81K as BTC Challenges Nvidia for Decade’s Top Asset Crown

CLARITY Act Uncertainty Is Not Derailing the Thesis

For investors, this is where Bernstein’s argument gets more interesting. The firm says Circle’s growth cycle can continue even if the CLARITY Act fails to pass during the September session. Stablecoin payments, tokenization and adoption are already developing, giving Circle other avenues for expansion.

There is still a vulnerability in the business. Circle generated $701 million in revenue and reserve income during Q2, but reserve income accounted for about 95% of total revenue. This means interest rates remain an important variable for CRCL stock.

For now, Bernstein’s $140 target shows a bet that USDC adoption can keep accelerating even while Washington debates the rules. The recent $1.7 billion jump in supply gives that argument some fresh evidence.

Also Read: Nancy Pelosi’s Latest Filing Reveals $13.5M in Bloom Energy and Intel Bets Worth 77.6x Her Salary