Analyst: The "CLARITY Act" may exert bearish pressure on yield-earning DeFi tokens.

According to Jinse Finance, the latest version of the cryptocurrency bill, the CLARITY Act, has garnered significant attention due to its regulatory clauses concerning stablecoins.
10x Research released a report stating that, in terms of practical implementation, this bill may have the most severe impact on DeFi and its associated tokens. The core content of the bill proposal is to prohibit providing financial returns on stablecoin balances, as well as all forms of similar profit incentives. This effectively ends the property of stablecoins as on-chain savings products, redefining them purely as payment circulation tools.
Marcus Tilton, founder of 10x Research, pointed out: “This means that the benefits from financial returns will clearly revert to a centralized model.” The reason is that the bill will consolidate profit-making activities within banks, money market funds, and various compliant licensed institutions, significantly compressing the competitive space for native crypto platforms in terms of yield returns.
Although there were early views suggesting that DeFi might benefit from this, the shift in industry dynamics will also impact DeFi. Tilton explained that the previous market logic held that if centralized platforms no longer offered financial returns, user funds would shift to the on-chain DeFi ecosystem. However, this assumption was based on the premise that DeFi would not be subjected to similar regulatory constraints. The reality is that the regulatory framework of the CLARITY Act is likely to extend its coverage to front-end interfaces and various token models; especially when projects generate transaction fee revenues and governance rights approach traditional equity attributes, regulatory intervention will be comprehensive.