CLARITY Act Sparks Fight Over Stablecoin Yield and Your Dollars

Core Viewpoint - The ongoing debate over the CLARITY Act highlights the struggle over control of stablecoin rewards, which has significant implications for the crypto industry and its users [1][4]. Group 1: CLARITY Act Overview - The CLARITY Act aims to establish regulatory authority over cryptocurrencies in the US, serving as a framework for governance [3]. - The central contention revolves around the rewards associated with stablecoins, which are digital tokens pegged to the value of one dollar [4]. Group 2: Impact on Users and Companies - Changes in regulations could affect the small returns users earn from holding stablecoins, potentially leading to a shift of these rewards to platforms outside the US [2][6]. - Companies like Coinbase reported significant income from stablecoin rewards, with an estimated $1.3 billion in 2025, influencing their stance on regulatory support [5]. Group 3: Perspectives from Banks and Exchanges - Banks argue that stablecoin rewards divert funds from traditional accounts, prompting regulatory scrutiny and adjustments to the proposed legislation [6]. - Exchanges contend that rewards are crucial for retaining user funds in crypto applications, as opposed to traditional banking options [5][6]. Group 4: Concerns for App Developers - Many crypto applications operate on open-source software, raising concerns about the implications of regulatory changes on their functionality and user access [7].