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Clarity Act boosts Circle by banning passive yield on stablecoins, favoring USDC's model.

Market News
18 May 2026, 22:32 WIB
Blockonomi
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Bullish
Clarity Act boosts Circle by banning passive yield on stablecoins, favoring USDC's model.

The Clarity Act, recently advanced by the Senate Banking Committee, restricts stablecoin providers from offering passive interest similar to bank deposits, favoring Circle's USDC which uses activity-based rewards. This legislation reduces yield competition, strengthening Circle's market position as USDC's market share has grown from 41% to 60% in a year. The Act aligns with Circle's strategy by allowing incentives tied to transaction activity rather than passive yields, supporting USDC's expansion without classifying it as a deposit. The bill now awaits a full Senate vote and further congressional approval before becoming law, potentially solidifying Circle's competitive edge in the stablecoin market.

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