CLARITY Act Could Expand Market for Crypto-Based Services
Summary
- The CLARITY Act could reshape return structures for crypto assets if it passes.
- Section 404 of the bill would restrict simple yield products offered by digital asset service providers (DASPs), making it necessary to build revenue models based on lending, collateral, and treasury management.
- Bolono said that if regulatory uncertainty is resolved, large-scale capital could enter the market and sectors such as decentralized finance (DeFi) could benefit.
Forecast Trend Report by Period
As debate over the CLARITY Act intensifies in the US Congress, the bill could reshape how the crypto industry generates returns, CoinDesk reported on May 23.
Joe Bolono, chief commercial officer at STBL, told CoinDesk that the industry has so far relied largely on investment gains. If the CLARITY Act passes, firms could build revenue models that generate income through the use of crypto assets.
The key provision is Section 404. It would restrict digital asset service providers, or DASPs, from offering yield products based solely on holding assets. That would force the industry to develop compliant revenue models built around lending, collateral and treasury management rather than simple deposit rewards.
In a regulated market, those processes could be automated through AI, Bolono said, adding that decentralized finance, or DeFi, could be among the beneficiaries. He also said that once regulatory uncertainty is resolved, large pools of capital could enter the market, calling that the biggest catalyst.
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