Circle and Coinbase shares fell more than 3% after reports that JPMorgan Chase and a consortium of major banks were advancing plans for bank-issued stablecoins following the progress of the CLARITY Act. The developments raised concerns that traditional lenders could compete with crypto-native issuers such as Circle and Tether. JPMorgan Chase has explored a potential stablecoin, but discussions remain preliminary and no product is under development. Separately, a consortium of more than a dozen banks, including Bank of America, Wells Fargo and Santander, is considering a stablecoin covering the U.S. dollar, euro and other Group of Seven currencies. The BankChain Alliance also announced plans for an industry-owned and industry-governed blockchain network, expected to emerge in the first half of 2027, with potential uses including tokenized deposits, stablecoins, treasury management and automated settlement. The Alliance represents about 3,283 institutions and $21.8 trillion in assets and is seeking a technology partner. Circle’s retail sentiment on Stocktwits moved from extremely bullish to bullish, while Coinbase sentiment remained extremely bullish; chatter for both stayed high. Coinbase continues to support the CLARITY Act, whose Senate passage remains unresolved, including the bill’s treatment of stablecoin yield. Analysts said bank-issued dollar stablecoins could reduce the market share flowing through Circle and USDC.