Clarity Act Poised to Spark New Era of Crypto ‘Yield-as-a-Service’
The recently proposed Clarity Act has the potential to fundamentally transform the way cryptocurrency users generate returns, according to industry experts. Joe Vollono, Chief Commercial Officer at stablecoin infrastructure company STBL, believes the bill’s restrictions on yield-bearing crypto products could trigger a shift from passive “hold-to-earn” approaches to more active, compliant "yield-as-a-service" models driven by artificial intelligence (AI).
A Shift from Passive to Active Crypto Yields
At the heart of the legislative debate is Section 404 of the Clarity Act, which would prohibit Digital Asset Service Providers (DASPs) and their affiliates from offering yield purely as a function of holding digital assets. This clause aims to curtail the popular passive investment strategies that rely solely on asset ownership to generate returns.
“What this effectively does is shift the industry from a hold-to-earn market to a use-to-earn market,” Vollono explained in an interview with CoinDesk. “You’re going to need compliant yield strategies to generate rewards on what would otherwise be idle capital.”
The transition means that instead of simply holding cryptocurrencies to earn passive yield, users and institutions will engage with more sophisticated, actively managed yield-generation services. These will likely incorporate AI technologies to orchestrate regulated capital flows throughout lending, collateral management, and treasury operations within the crypto ecosystem.
Regulatory Clarity Could Unlock Institutional Capital
The Clarity Act, which has passed the Senate Banking Committee and is slated for a full Senate vote as early as July, would establish the first comprehensive regulatory framework for digital assets in the United States. This framework aims to clarify how crypto tokens fall under the jurisdiction of bodies like the Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC).
Vollono emphasized that beyond its impact on yield products, the act’s clarity could finally open the door for large-scale institutional adoption by reducing legal uncertainties surrounding crypto investments.
“Once these issues are resolved, it allows capital at scale to enter the market,” he said. “That’s the real catalyst here.”
By creating clear guidelines for exchanges, brokers, stablecoin issuers, and decentralized finance (DeFi) platforms, the legislation is expected to reduce regulatory risks and bolster consumer protections. It also provides a compliance framework for traditional financial institutions—such as banks and asset managers—to build crypto services domestically rather than offshore.
AI-Powered Infrastructure: The New Middle Layer
Vollono predicts the rise of a “middle layer” of infrastructure providers specializing in compliant yield-generation tools powered by AI. These services could automate key functions such as collateral management, automated treasury operations, lending markets, and rewards distribution within a regulated environment.
“All of this can be automated by AI in a regulated market,” he said, noting that foundational technologies like smart contracts, oracles, DeFi rails, and APIs already exist and could be adapted to meet regulatory requirements.
This AI-driven orchestration infrastructure is expected to become the backbone of the emerging yield-as-a-service market within crypto.
Traditional Banks and Stablecoins: Competition or Collaboration?
The Clarity Act’s passage brings to light ongoing tensions between the crypto industry and traditional banks, particularly regarding stablecoins and the risk of deposit migration away from banks.
“There’s a lot at stake,” Vollono observed. “Banks are worried about deposit flight, but I think that concern is largely overstated.”
He explained that traditional fractional reserve banking depends on large capital bases for credit creation, which could be challenged if deposits move to tokenized dollars or blockchain-based yield products. However, Vollono believes smart incumbents will adapt rather than lose ground, potentially issuing their own stablecoins backed by collateral to generate compliant yield streams.
“Banks don’t necessarily have to give up market share,” he noted. “Smart incumbents are going to compete.”
STBL’s Vision: ‘Stablecoin 2.0’ and Compliant Yield
STBL is positioning itself at the forefront of this transformation, advocating for a new model dubbed “stablecoin 2.0.” Unlike traditional centralized stablecoin issuers, STBL’s infrastructure enables users to mint stablecoins backed by real-world assets while capturing the yield generated by the underlying reserves.
“Users that provide value into the ecosystem should participate in the economics,” Vollono said. The company’s technology supports yield management built around compliance, aiming to give users direct access to economic benefits rather than concentrating them among centralized issuers.
He concluded, “The Clarity Act could provide the regulatory framework needed to accelerate that transition. I’ll tell you what the Act makes clear: money-as-a-service has arrived.”
Looking Ahead
As the Clarity Act moves toward full legislative approval, the cryptocurrency industry stands at a potential inflection point. By redefining acceptable yield-generation practices and providing regulatory clarity, the Act could catalyze a new wave of innovation powered by AI and regulatory-compliant infrastructure, attracting significant institutional investment and reshaping how digital assets are used to generate returns.
About the Author:
Will Canny is a reporter specializing in cryptocurrency policy and innovation, with editing by Nikhilesh De. This article includes content reviewed and enhanced with AI tools under CoinDesk’s editorial standards.
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Note: This article was produced with assistance from AI tools, reviewed to ensure accuracy and adherence to editorial standards.
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