The Battle for Stablecoin Yields: Why the CLARITY Act Has Been Delayed

RektRecovery · 2026-01-19T14:20:12+00:00

The slow progress of the CLARITY Act is due to a power struggle over stablecoin yields, with a major trading platform opposing provisions that protect traditional bank profits. The 4-5% returns offered by stablecoins threaten the traditional financial ecosystem, leading to a redistribution of power between policy and finance. The market estimates a 50% chance of the bill passing, driven by the rapid growth of on-chain finance.

RektRecovery

2026-01-19 14:20:12

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[Crypto World] The progress of the CLARITY Act is slow, and the real issue does not lie in the regulatory framework itself, but in a power struggle over stablecoin yields. A major trading platform firmly opposes clauses aimed at protecting traditional banks’ profit margins. The platform’s executive recently stated that communication progress is “quite positive,” but he also candidly said: the core conflict is about who can profit from the digital dollar ecosystem.

The reality is that stablecoins currently offer a 4-5% yield. This poses a threat to banks — deposits are rapidly flowing into on-chain protocols, and the traditional financial moat is being eroded. This is not just a policy issue but a reallocation of power within the entire financial ecosystem.

The tug-of-war in Washington will continue, but the market has already made its judgment. On-chain trading platforms like generally believe that the probability of the bill passing this year is about fifty-fifty. Why? Because the growth momentum of on-chain finance is too strong, and it’s no longer a trend that can be stopped by one or two regulatory bills.

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ForeverBuyingDips

· 01-19 14:50

Traditional finance is really getting anxious. 4-5% makes them restless, it's hilarious. --- Bank: We can't lose this little profit! Web3: Then just don't block the way. --- 50% success rate? I bet it will still succeed in the end, an unstoppable trend. --- Haha really, earning from a stablecoin can shake the entire financial ecosystem. What does that say... --- On-chain finance is already so powerful, yet CLARITY is still bickering, that's a bit ridiculous. --- Power struggles always lag behind technological innovation, that's the current situation. --- Waiting for the big players to finish negotiations, I’ll continue to bottom fish on on-chain projects.

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LoneValidator

· 01-19 14:47

Traditional finance clings tightly, simply unwilling to be disrupted. Honestly, it's still a battle of interests, with a 4-5% return rate hitting the sore spot. --- 50% pass rate? It seems the exchanges are really competing now, trying to see who can win. --- The rapid growth of on-chain finance means politicians will have to compromise sooner or later, it can't be delayed much longer. --- Once again, it's about profit protection clauses, the old routine. If this bill actually passes, it would be no surprise. --- The internal struggles within the US financial sector, stablecoins are reaping the benefits haha. --- Honestly, it's too obvious that they want to do this just because it threatens bank profits. Such a bill can't possibly pass smoothly.

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FrogInTheWell

· 01-19 14:35

Traditional finance is tightly fixated on that little return, fearing that on-chain finance will take away their livelihood... A 50% probability indicates what? It just means both sides are competing against each other.

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OfflineValidator

· 01-19 14:24

Traditional finance is dead set against being eliminated, haha --- 50% probability? I think it's uncertain; the banking lobbying group is too fierce --- 4-5% returns are really amazing, no wonder the old crypto circle insists on blocking this --- Basically, it's about money grabbing; platforms want money, banks want money --- The momentum of on-chain finance is unstoppable, it's only a matter of time --- Reallocating power is about breaking monopolies, support --- CLARITY is delaying again, anyway I'm just earning yields now --- How long can the bank's support scheme last? --- Is it worth waiting for a 4-5% return? Instead of waiting, it's better to act now

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