The CLARITY Act Gains Attention for Prohibiting Stablecoin Interest Payments The final draft of the 'Digital Asset Market Transparency Act (CLARITY Act),' unveiled by the U.S. Congress on May 1, 2026, is sending significant ripples through the virtual asset industry and financial sector. The final text of the bill, released by Senators Thom Tillis and Angela Alsobrooks, includes a complete prohibition on interest payments for holding stablecoins. This move is interpreted as an attempt to redefine the boundaries between cryptocurrency and traditional finance. Although the bill has yet to pass Congress, the release of the final draft is expected to accelerate the legislative process, ensuring a considerable impact not only on the U.S. market but also on global financial and digital asset markets. One of the bill's key provisions, 'SEC 404. Prohibiting interest and yield on payment stablecoins,' explicitly forbids virtual asset companies from paying interest on users' stablecoin holdings. Specifically, it stipulates that 'any form of interest or yield' cannot be paid simply for customers holding stablecoins. This effectively aims to institutionally block yield-generating products similar to bank deposits. Conversely, rewards based on 'bona fide activities' such as actual network usage or trading activities are permitted, leading some analysts to suggest this offers the industry a degree of breathing room. However, the fact that this provision immediately blocked the development of bank deposit-like yield products sends a significant message across the entire cryptocurrency industry. This has particularly sparked strong reactions among investors who had anticipated risk-free returns through stablecoins. Faryar Shirzad, Chief Legal Officer at Coinbase, positively assessed the final draft, stating it 'has somewhat resolved the long-standing conflict between the digital asset industry and the banking sector.' He explained that while the draft 'strengthened the regulation of rewards, it protected rewards based on actual virtual asset platform and network usage.' Indeed, there has been ongoing debate between the financial sector and the virtual asset industry regarding stablecoin interest. The core of the dispute centered on whether paying interest or yield to stablecoin holders, akin to bank deposits, could undermine the competitiveness of the financial system. From the banks' perspective, there has been growing concern that if stablecoins operate in a manner similar to deposits, funds could exit the traditional banking system. The final draft is being evaluated as a compromise that accommodates these concerns from the banking sector while also ensuring some independent areas of utilization for virtual assets. With the final draft now public, many digital asset companies in the U.S. are swiftly developing strategies to adapt to the new regulatory environment in anticipation of the bill's eventual passage. According to traders on Polymarket, there is currently a 55% chance that the CLARITY Act will be signed into law by 2026. This suggests the legislative process is likely to proceed relatively smoothly, with the specific impacts of the bill potentially becoming evident in the market as early as this year. With the release of the final draft, major hurdles to the CLARITY Act's passage are believed to have been removed, brightening its legislative outlook. Mert Mutaz, CEO of Helius Labs, expressed dissatisfaction, stating it's 'a significant loss not to be able to earn risk-free returns with a stable currency like the dollar without a bank.' In contrast, Brian Armstrong, CEO of Coinbase, positively evaluated the final draft, urging swift progress towards the bill's passage. Protecting the Financial System or Hampering the Crypto Industry? The CLARITY Act is not merely a bill addressing stablecoin interest payments. It aims to complement the GENIUS Act by establishing a regulatory framework for digital assets beyond stablecoins. It is particularly drawing industry attention due to the high likelihood of granting most digital asset jurisdiction to the Commodity Futures Trading Commission (CFTC). The U.S. Congress is expected to adopt a 'market infrastructure' bill in early 2026, establishing a comprehensive regulatory framework for digital asset brokers, dealers, and exchanges. This, coupled with the Trump administration's pro-crypto policy stance, is poised to fundamentally reshape the regulatory landscape of the U.S. digital asset market. The key question now is how to view the multifaceted impact of this measure on cryptocurrency trading and the broader financial industry. In the short term, there is a high probability of disappointment among U.S. market investors who had anticipated stablecoin interest. This implies that the movement to replace deposits with stablecoins may falter. It cannot be ruled out that funds seeking risk-free returns might revert to traditional banking or migrate to platforms in other countr
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