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Circle Tops Profit Estimates as Stablecoin Circulation Surges

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Circle (CRCL.N) reported stronger-than-expected third-quarter profits on Wednesday, driven by surging adoption of its flagship USDC stablecoin and higher reserve income amid expanding global use of digital dollars.

The company said USDC’s circulation more than doubled from a year earlier to $73.7 billion, as stablecoins — digital tokens backed by safe assets such as U.S. Treasuries — continue to gain traction with traditional financial institutions and regulators worldwide.

Circle earned an adjusted 36 cents per share, easily beating analysts’ expectations of 22 cents, according to LSEG data. Total revenue and reserve income rose 76% year-on-year to $739.8 million, surpassing forecasts of $700.5 million.

The gains come as the Trump administration’s Genius Act, introduced earlier this year, set the first clear legal framework for U.S. dollar-backed stablecoins, positioning the United States to become a leader in regulated digital payments.

Despite the upbeat earnings, Circle’s stock fell about 3% premarket after it raised its full-year operating expenses forecast to between $495 million and $510 million, citing new investments in platform growth and rising payroll taxes.

The company also faces the prospect of lower reserve income if interest rates decline, prompting efforts to diversify revenue streams through innovation. Earlier this year, Circle launched Arc, a new public blockchain designed to handle stablecoin transactions and support cross-border payments, merchant services, and DeFi integrations.

Fear of Trump’s Immigration Raids Pushes Hispanic Shoppers Toward Online Buying

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In Newark’s largely Latino Ironbound district, business owner Rosa Ludena watches customers vanish from her electronics shop. For over two decades, she has sold phone accessories to her community, but now the aisles are quiet.
“People are afraid to go out because of immigration raids,” says Ludena, who emigrated from Ecuador in 1999.

Since President Donald Trump renewed his hardline immigration crackdown, high-profile raids — from Home Depot parking lots to farms and factories — have shaken Hispanic communities nationwide. A January raid on a fish market near Ludena’s store still haunts local shoppers.

The impact extends far beyond Newark. Flea markets, small retailers, and national brands alike report falling in-store traffic as Hispanic consumers retreat to online shopping, fearing ICE patrols and public scrutiny. “It’s unsurprising given concerns over changing immigration policies,” said Mark Mathews, chief economist at the National Retail Federation.

Retail surveys by Kantar show store visits by Hispanic shoppers fell nearly 15% between April and June, while non-Hispanic visits dropped only 4.5%. Online shopping, meanwhile, reached record highs — 60% of Hispanic consumers shopped online last quarter.

For small business owners, the shift is devastating. “These aren’t big companies with websites,” said Oliver de la Garza of Proyecto Azteca, a nonprofit in Texas. At an Alamo flea market, he said, vendor numbers have halved since a June raid.

Major brands are noticing too. Heineken and JD Sports both reported sales declines among Hispanic customers. Shoe Palace, which caters to Latino shoppers, saw foot traffic collapse earlier this year. “You can see definitively the impact of immigration policy,” said JD Sports CEO Régis Schultz.

Large retailers like Walmart — whose online sales jumped 26% this summer — are benefiting from the trend, while smaller stores lacking e-commerce channels are losing customers fast.

Even legal residents say they’re nervous. “There’s fear of being watched or harassed,” said Julie Craig, a Kantar vice president.

Hispanic Americans, who represent 19% of the U.S. population, have a projected $2.8 trillion in buying power next year — but fear, not spending potential, is shaping how they shop.

EU Considers Pausing Parts of Landmark AI Act Amid Pressure from U.S. and Big Tech

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The European Commission is considering pausing parts of its landmark Artificial Intelligence Act, following growing pressure from U.S. officials and major tech companies such as Meta and Alphabet, the Financial Times reported on Friday.

According to the report, the move comes after months of lobbying from Silicon Valley giants and warnings from the Trump administration that strict EU regulations could strain transatlantic trade relations.

A senior EU official told the FT that Brussels has been “engaging” with Washington on potential adjustments to the AI Act and related digital regulations as part of a broader simplification effort, which is expected to be adopted on November 19.

The AI Act, which became law in August 2024, is the world’s first comprehensive framework to regulate artificial intelligence technologies. It categorizes AI systems by risk level — from minimal to unacceptable — and imposes restrictions on areas like facial recognition, biometric surveillance, and generative AI transparency.

While a European Commission spokesperson had previously dismissed calls for delays, officials are now reportedly weighing temporary pauses for specific provisions, particularly those affecting companies developing large AI models.

An EU spokesperson told the FT that “various options” are being discussed but emphasized that the bloc remains “fully behind the AI Act and its objectives.”

The proposal reflects Europe’s balancing act between maintaining AI safety and innovation leadership while addressing geopolitical and trade pressures from the United States and industry stakeholders.