The "CLARITY Act" Impact on Stablecoin Yield: Regulatory Restructuring and Investment Logic Shift

The latest version of the U.S. "CLARITY Act" has caused market tremors, with proposed terms clearly limiting the distribution of earnings on stablecoin balances. Following the announcement, Circle's stock plummeted by 20.11%, marking the largest single-day drop since its listing, while Coinbase also fell nearly 10%.

The core impact of the act lies in severing the "yield" attribute of stablecoins. Currently, compliant stablecoins like USDC generate earnings through holding U.S. Treasuries, with some returned to holders. If the act is enacted, issuers will be unable to allocate interest to users, directly undermining the holding value of stablecoins. For the crypto ecosystem, stablecoins are the core infrastructure of DeFi, and limiting yields will lead to increased on-chain capital costs, suppressing the activity of leveraged trading and liquidity mining. Notably, Tether announced on the same day that it would hire the "Big Four" for auditing for the first time, indicating that the stablecoin sector will accelerate differentiation.

For investors, in the short term, it is essential to be wary of DeFi protocols closely tied to USDC facing the risk of capital outflows. In the medium to long term, regulatory clarity is an essential path for industry maturity—yield restrictions may drive innovation, pushing protocols with real application scenarios to stand out. Non-yielding assets like Bitcoin may actually benefit from capital outflows, gaining new allocation demand in the $68,000-$72,000 range. #CLARITY法案

Midnight Network: The Cornerstone of Privacy Compliance in the Regulatory Era

In the current tightening of stablecoin regulation, Midnight Network builds a compliant privacy layer that balances data protection and selective disclosure through zero-knowledge proof technology. Its dual-token model—governance and staking token $NIGHT and DUST for paying network fees—cleverly separates value storage from resource consumption. As the market seeks a balance between regulation and innovation, Midnight provides a trusted privacy protection framework for digital assets, making #night a rational choice for safeguarding digital sovereignty in the regulatory era. #night $NIGHT @MidnightNetwork