Clarity Act Would Restrict Passive Crypto Yield Products

The Clarity Act would prohibit Digital Asset Service Providers and their affiliates from offering yield based only on holding a digital asset under Section 404 of the bill. Joe Vollono, chief commercial officer at stablecoin infrastructure firm STBL, said the restriction would move the industry from passive hold-to-earn models to active, compliant yield strategies.

"What this effectively does is shift the industry from a hold-to-earn market to a use-to-earn market," Vollono told CoinDesk.

The bill cleared the Senate Banking Committee and is scheduled to merge with the Senate Agriculture Committee version before House reconciliation. Regulators would have about 12 months to implement the framework if enacted. Vollono said the measure could open the door to large-scale institutional capital once regulatory questions are resolved.

Vollono said artificial intelligence could serve as an orchestration layer for regulated capital flows, supporting automated treasury, lending, and collateral tools. He added that existing technology such as smart contracts, oracles, and DeFi rails could be adapted for compliance.

Vollono said banks worried about deposit flight could instead issue their own stablecoins and generate compliant yield under the new rules. "I’ll tell you what the Act makes clear: money-as-a-service has arrived," he said.