The Era of Easy Money with Stablecoins Is Over, DeFi Native Stablecoins May Become the New Engine in Regulatory Gaps
The era of passive income from stablecoins is ending due to regulatory changes, particularly the proposed CLARITY Act in the U.S., which aims to restrict centralized exchanges (CEXs) like Coinbase from offering interest on stablecoin holdings such as USDC. This legislation, backed by banking industry lobbying, seeks to prevent stablecoins from functioning as "chain-based deposits" that compete with traditional banks by offering Treasury-like yields without banking regulations.
However, the CLARITY Act carves out exceptions for rewards based on "identifiable activities," including platform engagement, transactions, and contributions to blockchain infrastructure. This creates an opportunity for DeFi-native stablecoins like USDe and USDS, which generate yields through mechanisms such as staking, derivatives hedging, and protocol revenue sharing—activities framed as active participation rather than passive income.
As a result, centralized stablecoins may revert to their core roles in payments and settlements, while DeFi alternatives could thrive by offering compliant, activity-based yields, reshaping the stablecoin landscape into a dual structure of utility-focused and yield-generating assets.
marsbit04/09 09:33
