CLARITY Act enters deliberation countdown: stablecoin yields are cut, DeFi regulation is clearer

Gate News Update: The U.S. Senate is accelerating its progress on the CLARITY Act, the “Digital Asset Market Clarity Act,” with plans to move into the committee review phase in the latter half of April 2026. Senator Cynthia Lummis has recently signaled that the final text may be released within the next few days, suggesting that the negotiations are nearing completion.

Notably, this round of drafts has included substantive changes. The most controversial issue around stablecoin yield has largely been resolved: under the new proposal, passive yield distribution on stablecoin balances will be limited or prohibited, aligning more closely with the stance of traditional banking systems. As a compromise, the bill allows incentive mechanisms to exist only when tied to payment activities or platform usage, but the scope has clearly been tightened. This change indicates that the crypto industry has proactively conceded in its efforts to get legislation passed.

At the same time, the DeFi space is gaining clearer protection boundaries. The updated draft is expected to make explicit that decentralized protocols and their developers will not be considered financial intermediaries, helping avoid compliance responsibilities similar to those of banks. This provision is particularly important for Ethereum’s ecosystem and on-chain application developers, as it can reduce regulatory uncertainty.

In terms of regulatory authority allocation, the bill continues the existing framework: the U.S. Commodity Futures Trading Commission (CFTC) will be responsible for regulating digital commodities, while the U.S. Securities and Exchange Commission (SEC) will continue to regulate assets that involve characteristics of investment contracts. This division is widely seen as a core pillar for building the U.S. crypto regulatory framework.

However, the time window is tightening. Senator Bernie Moreno has warned that if the bill is not advanced by May 2026, related legislation may be forced to be delayed until after the midterm elections. The key to the current legislative standoff lies in how to strike a balance between industry demands and political realities.

As mainstream assets like Bitcoin and Ethereum gradually integrate into traditional financial systems, the direction of the CLARITY Act will not only affect the U.S. crypto market’s regulatory framework, but also have spillover implications for digital-asset policies worldwide.