Cathie Wood’s Ark Invest scooped up roughly $16.3 million worth of Circle Internet Group (CRCL) shares on March 24, 2026, the same day the stablecoin issuer’s stock plunged approximately 20% on the New York Stock Exchange. The contrarian buy, spread across three Ark ETFs, came as a draft provision in the U.S. Clarity Act sent shockwaves through the stablecoin sector.
Ark Buys the Dip: 161,513 Circle Shares Across Three ETFs
Ark Invest purchased 161,513 shares of CRCL at a closing price of $101.17, according to Benzinga. The shares were distributed across ARKF (ARK Blockchain & Fintech Innovation), ARKK (ARK Innovation), and ARKW (ARK Next Generation Internet).
Ark Invest — Circle (CRCL) Purchase
$16M
Shares acquired by Cathie Wood’s Ark Invest during the 20% drawdown
The same day, Ark sold 40,064 shares of Bullish (BLSH) and 3,148 shares of Taiwan Semiconductor (TSM), suggesting a deliberate rebalancing toward crypto-adjacent equities rather than a broad buying spree.
Wood has built her reputation on high-conviction bets during sell-offs, and the timing here fits that pattern. The Fear & Greed Index sat at 14, deep in “Extreme Fear” territory, at the time of the purchase.
A Draft Yield Ban Triggered the Selloff
Circle’s 20% single-session drop was triggered by a circulated draft of the U.S. Clarity Act containing a provision that would ban stablecoin issuers from paying yield on passive stablecoin balances. The draft language goes further, prohibiting any structure “economically equivalent to interest.”
Circle (CRCL) — Single-Session Decline
−20%
Share price drop after draft Clarity Act threatened stablecoin yield models
That provision strikes directly at Circle’s core revenue model. Circle collects interest on the reserve assets backing USDC and shares that revenue with Coinbase, which in turn funds user rewards on the platform. If the provision becomes law, that entire revenue-sharing structure could be rendered illegal.
Coinbase (COIN) fell roughly 10% on the same day, reflecting the market’s view that both companies are exposed. Mizuho analyst Dan Dolev warned that “a potential ban could reduce the use case for Circle in the near-term, while not paying rewards would reduce the long-term attractiveness of holding USDC on Coinbase’s platform.”
Shay Boloor of Futurum Equities added that “the restrictions weaken a key part of the bull case by limiting USDC’s evolution beyond payments.” The market interpreted the draft as a fundamental threat, not a procedural footnote.
Circle’s Position After a 170% Rally and a Sharp Correction
Context matters here. Before the March 24 drop, CRCL had rallied approximately 170% since early February 2026. The selloff, while dramatic in percentage terms, came after an extended run-up fueled by optimism around stablecoin-friendly regulatory momentum and Circle’s public market debut.
USDC remains the second-largest stablecoin behind Tether’s USDT, and Circle’s position as a regulated, U.S.-based issuer has been central to its investment thesis. Ark’s decision to buy the dip suggests the firm believes the Clarity Act provision is either unlikely to pass in its current form or that Circle can adapt.
Owen Lau of Clear Street offered a more measured view, calling the selloff an overreaction. “Investors should view this as an overreaction; the market tends to shoot first and ask questions later,” Lau said. Bitwise’s Ryan Rasmussen echoed that sentiment, noting “there will be workarounds, such as loyalty programs replicating yield incentives.”
Compounding the pressure, Tether simultaneously announced it had hired a Big Four accounting firm to conduct a full audit of USDT. That move, long demanded by critics, adds competitive pressure on Circle by neutralizing one of USDC’s key differentiators: its perceived transparency advantage.
What to Watch: The Clarity Act’s Path Through Congress
The Clarity Act remains a Senate-level draft, not enacted legislation. Its yield ban provision could be revised, removed, or stalled entirely as it moves through committee. The key question for CRCL investors is whether the final bill retains the “economically equivalent to interest” language.
If the provision survives in its current form, Circle would need to fundamentally restructure how it monetizes USDC reserves, and Coinbase would lose a meaningful revenue stream. If it is softened or removed, the 20% drop could look like a buying opportunity, precisely the bet Ark appears to be making.
Circle’s upcoming earnings and any official company response to the draft legislation will be the next concrete catalysts. Investors tracking broader crypto regulatory developments should watch for markup sessions and committee votes on the Clarity Act in the coming weeks.
For now, Ark’s $16 million purchase stands as the most visible institutional signal that at least one major fund sees the correction as temporary, not structural.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
