The latest draft of the Clarity Act confirms that stablecoins won't be able to offer yield on user balances. This is a big shift for the market, as many platforms have been using yield as a key incentive for adoption.

For traders, this means fewer passive income options within the U.S. regulatory framework. Projects that rely on yield generation may need to pivot their models or move operations offshore. Expect some volatility in stablecoin-related tokens as investors reassess risk and utility.

This could also push more activity toward decentralized protocols, where yield mechanisms remain intact. Keep an eye on how major issuers like Circle and Tether respond—regulatory clarity here could either limit growth or force innovation.

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