Crypto’s Big Sacrifice: CLARITY Act Bans Stablecoin Yield, DeFi Protected

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CLARITY Act Nears April Markup as Key Crypto Rules Shift

The US Senate is getting ready to advance the Digital Asset Market CLARITY Act, and plans to begin reviewing and potentially amending it in late April.

Senator Cynthia Lummis recently indicated that the final version of the legislation might be available in just a few days, suggesting the negotiations are nearing completion.

However, the bill advancing toward markup looks materially different from earlier drafts.

The U.S. Senate will begin reviewing the CLARITY Act in April. They aim to approve the bill in May, and Senator Moreno has cautioned that if it’s not passed by then, it could delay any further action on laws related to digital assets.

— Bull Theory (@BullTheoryio) March 30, 2026

The CLARITY Act Has Changed a Lot

Over the past month, lawmakers have resolved the most contentious issue: stablecoin yield. 

The recent agreement essentially stops users from earning rewards simply by holding stablecoins, which is what banks had been asking for.

As a trade-off, the bill would likely permit small rewards, based on how much someone uses a service or makes payments.

This represents a significant change from previous plans, which allowed for more flexible rewards. While crypto companies initially argued for maintaining high rewards to attract users, they’ve largely compromised on this point to gain support from both Democrats and Republicans.

Great news! The Clarity Act has been finalized, as confirmed by Senator Lummis. The full text of the bill will be released next week. This legislation aims to protect decentralized finance (DeFi), enable higher returns on stablecoins, and remove obstacles for institutional investors. It’s designed to address years of uncertainty surrounding regulation in this space – and it’s all happening next week with the release of the bill’s text.

— Crypto Tice (@CryptoTice_) March 29, 2026

Crypto Industry Sacrificed Passive Income for DeFi Protection

Legislators are also working to better safeguard decentralized finance (DeFi). Changes to the rules are planned to make it clear that developers and protocols where users control their own funds won’t be considered traditional financial companies.

This resolves worries from the tech industry that previous versions might have unfairly required software developers to follow the same strict rules as banks.

The main part of the bill hasn’t changed. It still clearly divides responsibilities between two agencies: the Commodity Futures Trading Commission (CFTC) will oversee digital commodities, while the Securities and Exchange Commission (SEC) will continue to regulate investment contracts.

The CLARITY Act is causing a major debate in Washington because it will determine which government agency oversees the cryptocurrency industry in the United States. The bill is now heading to the Senate Banking Committee for further consideration, and time is running out to make a decision, as reported by Anol Shaeed.

— BeInCrypto (@beincrypto) February 12, 2026

Despite this, political factors are influencing how quickly things move forward. Senator Bernie Moreno has cautioned that if the bill isn’t approved by May, more comprehensive laws regarding digital assets might be delayed until after the 2026 midterm elections.

Lawmakers are now trying to move quickly while also finding common ground. The CLARITY Act could finally provide the clear rules the industry has been seeking, but only if companies agree to change some of their most debated practices.

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2026-03-31 02:42