U.S. CLARITY Act Stablecoins

Recently, the U.S. “CLARITY Act” crypto bill has achieved a major breakthrough, with bipartisan senators reaching a compromise on stablecoin yield provisions. The bill clearly bans interest payments on idle token holdings, preventing stablecoins from indirectly gathering deposits that could disrupt the banking industry; however, it allows rewards for proactive activities such as trading, transferring, staking, and participating in DeFi interactions.

The bill also delineates regulatory responsibilities: the CFTC regulates mainstream digital assets such as Bitcoin, the SEC oversees security-token–type assets, and stablecoins are led by oversight from the Treasury Department. It further requires stablecoin issuers to operate under licenses, maintain fully funded reserves with high liquidity, ban algorithmic stablecoins, and standardize DeFi compliance and KYC requirements. The bill will enter a Senate vote on May 11; once implemented, it will clearly define the compliance boundaries for the industry, benefit institutional capital as it moves in, and reshape the overall landscape of the crypto market.