TLDR Tech / Fintech
The clarity act banned stablecoin yield to protect banks
A proposed US crypto bill is reshaping the stablecoin landscape by restricting interest earned simply from holding these assets, triggering sharp market reactions. The change undercuts the revenue-sharing model behind USDC, wiping billions in value from related companies while leaving competitors like Tether unaffected and potentially advantaged. As policymakers leave decentralized finance largely undefined, capital may increasingly flow toward DeFi platforms where yield remains available, creating an unintended shift in where value accrues.
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