Clarity Act and disputes over stablecoin yields. What's the connection?



As many have noticed, there were debates in the Senate regarding the profitability of stablecoins. Bankers outright refused to accept terms with fixed or floating interest rates. However, they left incentive tools: staking, trading rewards, and various activity bonuses. This can be seen as the first step toward opening up significant opportunities for passive income. A good move, and in the future, they might even mask the annual percentage yield as a loyalty program.

The traditional banking sector currently isn't very generous with earnings for holding liquidity in the system. God willing, it will cover the annual inflation, but that's not guaranteed. If suddenly this stablecoin yield tool becomes significantly more attractive, there’s a chance that liquidity will flow from traditional finance into the crypto market. This is under the condition that regulators don’t tighten the screws, and if they discover income in the form of interest for holding stablecoins, similar to traditional finance.

The Clarity Act itself might be passed before Independence Day in the U.S., which is July 4th. If everything goes smoothly and this bill reaches the president’s desk, there’s a chance for at least some market recovery. But it’s not certain that this will happen as expected. Judging by the entire journey this market has gone through, the Clarity Act is the last and final legislative step for the crypto market; there’s nothing more to pass.

The Genius Act exists, and the Clarity Act exists. They will agree on stablecoin yields, probably creating loopholes to allow earning annual interest under the guise of activity rewards. And most importantly, at the start, these crypto interest rates will be much more attractive than those in the banking sector. This will lead to greed and a flow of dollar liquidity into blockchain.
Adding to this is the US desire to expand the dollar’s reach worldwide. Plus, ambitions for digital currency digitization. How to make the crowd voluntarily enter this sector and bring their money here? Only through greed and attractive rewards.
Essentially, people will move into a digital concentration camp, chasing earnings.

The problem is, how will such an influx of liquidity affect the market as a whole? I hope positively.
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