Citi analysts have reaffirmed their top crypto sector stock selections even as lawmakers and industry participants continue to spar over the details of digital-asset regulation. The firm points to two names it believes are positioned to capture upside from growing stablecoin use and heightened institutional activity.
At the same time, Citi underscored that legislative momentum for the CLARITY Act has slowed. Stakeholders remain in disagreement over several provisions, with particular focus on how stablecoin rewards should be handled. Citi said a potential markup could take place by late March, with passage being targeted for April or May, but anticipated that some concessions will be necessary to resolve contentious items.
Circle Internet Financial
Citi's top overall pick is Circle Internet Financial, which the bank rates as a Buy with a $243 price target. The stock has rallied approximately 100%, yet Citi contends that the market may be only beginning to factor in the broader monetization avenues for USDC stablecoin. The bank highlights Circle's potential role as a default settlement rail for what it describes as agentic commerce, and notes that a convergence between AI and payments could extend reserve-income economics into embedded transaction infrastructure.
Technically, Circle's Arc Blockchain is in testnet and could move to mainnet later this year, a development Citi incorporates into its forward-looking view. The $243 price target assumes roughly $200 billion of payments and transfer volumes ramping over the next five years, according to the note. Citi also flagged cross-border payments opportunity and regulated network scaling as material growth drivers.
The firm cited recent market activity around Circle, noting that Clear Street upgraded the stock to Buy and Bernstein SocGen reiterated an Outperform rating. In corporate developments, Circle appointed Microsoft executive Kirk Koenigsbauer to its board of directors.
Bullish Group
Citi placed Bullish Group as its second-ranked crypto-native pick. The stock has risen approximately 55% since reporting earnings, driven by strong monthly volumes in January and February that outpaced most exchanges. Citi lowered its price target to $65 per share from $67, attributing the reduction primarily to updated Bitcoin forecasts.
The bank expects Bullish to sustain growth momentum as it deepens relationships with U.S. institutional clients following its September New York BitLicense approval. Citi also pointed to the company's product expansion, including the launch of options trading in late 2025, which the note says is seeing positive traction.
Bullish reported a 70% increase in spot trading volumes in February compared with January, and Citi applies a 40.0x-45.0x FY'27E EV/EBITDA multiple in its valuation work. The bank's model treats capitalized Bitcoin holdings as contributing roughly $13 per share to value.
On the analyst front, Citi observed that Rosenblatt and JPMorgan have trimmed their price targets on Bullish, while Canaccord Genuity and Rosenblatt continue to carry Buy ratings on the name.
Takeaway
Citi's stance highlights two distinct playbooks within crypto: Circle as a payments- and stablecoin-centric infrastructure story with an eye on reserve-income mechanics and network scaling; and Bullish as an exchange-focused growth name leveraging product expansion and institutional adoption. Both ideas are presented amid an unresolved regulatory backdrop that could shape near-term outcomes.