Circle Sees Revenue Growth but Faces Uncertainty in Stablecoin Rewards

Circle, a leading cryptocurrency company, reported significant revenue growth in Q4 2025, driven by U.S. Treasury bill interest and the increasing market cap of its stablecoin USDC. However, despite this success, Circle's net loss for FY25 was $70 million due to rising operating expenses.

The growth of USDC's market cap has been a key factor in Circle's revenue surge, reaching $75.3 billion by December 31, 2025. The company projects a 40% compound annual growth rate for USDC going forward and expects its 'other' revenue to grow between $150-$170 million in FY26.

However, the future of stablecoin rewards is uncertain as stakeholders negotiate with the White House on proposed legislation. The CLARITY Act, which aims to regulate digital asset market structure, has been a point of contention among stakeholders, particularly regarding restrictions on third-party platforms offering customers 'rewards' for holding stablecoins like USDC.

Circle's CEO, Jeremy Allaire, expressed cautious optimism about the possibility of finding a compromise language that would allow the bill to pass. He emphasized the importance of integrating stablecoin technology into mainstream finance and stated that America's efforts are spilling over into international markets.