The Clarity Act sparks a banking deposit competition during wartime, and the cryptocurrency industry welcomes its moment of industry normalization

Ripple CEO recently mentioned a 90% probability that the Clarity Act will pass in early April. But this is more than just regulatory news; it reflects a critical turning point in the development of the crypto industry. Many are still focused on short-term price fluctuations, unaware that the real transformation lies in the ongoing battle over bank deposit interest rates—an direct confrontation between stablecoins and the traditional banking system. The Clarity Act marks the dividing line in this competition.

In a nutshell, the core of the Clarity Act: providing crypto assets with official registration. Over the past few years, the most absurd situation in the crypto industry has been regulators giving conflicting statements—SEC claiming securities, CFTC claiming commodities, projects unsure if they will be sued tomorrow, exchanges facing subpoenas at any time, and compliance departments simply dismissing investments as “uncertain risks.” Ultimately, funds are not unwilling to enter but simply dare not.

The Essence of Regulatory Deadlock: Who Is Afraid of the Clarity Act?

The main issue the Clarity Act aims to solve is classification, not prohibition. Highly decentralized assets like Bitcoin and Ethereum are likely to be officially categorized as “digital commodities” rather than securities. Once classification is clear, the looming regulatory sword of the SEC will no longer be wielded arbitrarily. This means project teams, exchanges, and institutional investors can finally plan long-term compliance strategies instead of constantly worrying about regulatory risks.

Asset Segregation and Classification Regulation: The Two Pillars of the Bill

The second key point of the Clarity Act is customer asset segregation. The bill requires crypto trading platforms to fully segregate customer assets from platform assets, a necessary safeguard designed in response to the FTX black swan event. The tragic episodes of exchanges misappropriating user funds for high-risk investments will be difficult to repeat under clear custody rules. This is not just a wording game but a real protection of investors’ assets.

Stablecoin Yield and Bank Deposit War: The True Reason for the Delay in the Bill

Why has the negotiation of the Clarity Act been delayed so long? On the surface, it’s a technical regulatory issue, but fundamentally, it’s a battle over bank deposit interest rates. The key sticking point is whether stablecoins can “generate yield.” If users can earn a few percentage points by converting USD into USDT, who would still want to keep their money in a bank earning 0.01% interest? This is not just a regulatory debate but a deposit war—an direct confrontation between traditional finance and DeFi ecosystems.

As hundreds of billions of dollars in deposits could be attracted to crypto, banks are lobbying policymakers to impose more restrictions. The current compromise is that risk-free interest income may be limited, but user-initiated DeFi yields will be preserved. Both sides make concessions, paving the way for the bill’s passage.

From Gray Area Innovation to Regulatory Compliance: The Beginning of Structural Change

The real focus is not on short-term price swings but on legal certainty itself. Over the past few years, the biggest barrier in the crypto asset space has not been technical flaws or narrative gaps but legal uncertainty. Once the Clarity Act passes, compliance departments of pension funds, insurance companies, and sovereign wealth funds will be able to approve crypto allocations—exactly what many institutional investors have been waiting for.

Crypto assets will shift from “gray area innovation” to an “approved asset class.” This is a structural change, signaling the industry’s move from the fringe to the mainstream. The opening of institutional participation will bring a scale of capital vastly different from before.

Major Players Already Positioned, News Just Formalizes

The market may seem calm now, but that doesn’t mean no changes are happening. Major moves are often made in advance, with news serving as the final stamp of approval. Those who don’t understand are waiting for official policy to be announced; those who do are already anticipating the true arrival of liquidity.