Circle Unfreeszes USDC Wallets Amid Clarity Act Uncertainty

Circle Internet Group (CRCL), the issuer of the USDC stablecoin, reportedly unfroze two business-linked hot wallets on Saturday, blockchain investigator ZachXBT reported, amid growing scrutiny over last week's freeze tied to a sealed New York civil case.

The latest unfreezes reportedly followed Circle's decision to freeze USDC balances across 16 operational business hot wallets, citing compliance with an ongoing U.S. legal matter. ZachXBT, who first reported the freeze on Tuesday last week, said he had spoken with one of the affected firms, which confirmed the action was linked to case number 26-cv-2327, a sealed civil case in New York with no details publicly available.

In related news, Goldman Sachs analyst James Yaro said the recent decline in Bitcoin and the broader crypto market has “roughly reached the average level of historical cycles from peak to trough,” indicating prices may be nearing a temporary bottom. However, Goldman Sachs cautioned that trading volume remains low and could decline further in the coming months, potentially putting continued pressure on prices.