Morgan Stanley Downgrade Slams Circle Internet as CLARITY Act Looms

Circle Internet's stock led a decline in large-cap crypto equities after Morgan Stanley downgraded it to 'Underweight' from 'Equal Weight', slashing its price target by 60%.

The downgrade added to pressure on CRCL shares, which already faced uncertainty due to the stalled Digital Asset Market Clarity Act (CLARITY) and a drop in Bitcoin's price below $63,000.

TD Cowen initiated coverage of CRCL with a 'Buy' rating and an $82 price target, citing Circle's rapidly growing high-margin fee-based revenue and attractive growth and diversification.