Proposed legislation could ban passive crypto yield products, pushing firms toward active, compliant yield strategies using AI tools.
The Clarity Act’s Section 404 would prohibit Digital Asset Service Providers from offering yield solely for holding digital assets. This could end passive ‘hold-to-earn’ models in crypto markets, forcing a shift to active yield strategies.
Industry experts suggest AI-driven treasury, lending, and collateral tools may emerge as the next infrastructure layer. The bill’s restrictions could also encourage banks to participate in the stablecoin economy rather than compete with it.
Stablecoin infrastructure firm STBL’s Chief Commercial Officer Joe Vollono said the legislation would create a ‘use-to-earn’ market, requiring compliant yield strategies to generate returns.