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May 05, 2026Shares of a major stablecoin issuer jumped nearly 20% after lawmakers reached a compromise on a proposed crypto market structure bill known as the CLARITY Act. The updated legislation preserves stablecoin reward programs, but only under specific conditions.
The revised language now restricts crypto firms from offering interest-like returns on passive stablecoin deposits—similar to traditional savings accounts. That function is expected to remain within the domain of banks. However, the bill still permits rewards when they are tied to user activity, such as trading, transactions, or staking.
This distinction is significant because earning yield has been a major incentive for users to hold stablecoins. By allowing activity-based rewards, the new framework supports continued engagement without directly competing with traditional banking deposit products.
Following the announcement, several crypto-related stocks saw gains, and the broader market reacted positively. Bitcoin also rose more than 1%, hovering around $79,000 after briefly crossing $80,000 over the weekend for the first time in months.
The changes could create pressure for smaller crypto platforms that rely heavily on high-yield deposit offerings to attract users. At the same time, the development reflects a broader shift in the industry—from focusing on returns to emphasizing infrastructure and utility within the financial system.
Banking sector analysts have largely viewed the update as a positive move. The compromise helps reduce uncertainty around regulation, addresses concerns about potential deposit outflows from traditional banks, and creates a more controlled environment for banks to participate in digital asset infrastructure.
Overall, the response from the crypto industry has been favorable, with many seeing the legislation as a step toward clearer and more balanced rules between digital asset firms and traditional financial institutions.
View Source>> cnbc
Developcoins Market View:
The market is clearly shifting toward regulation-focused growth and utility-driven models across the crypto space. Activity-based rewards, stronger compliance frameworks, and increasing institutional adoption are becoming key trends shaping the future of digital assets. These changes are also pushing projects to focus more on long-term sustainability, security, and real-world use cases instead of short-term gains. Developcoins is actively tracking these evolving trends, analyzing market movements, and aligning with the current direction to stay ahead in this transforming ecosystem.