BlockBeats News, May 18th, U.S. policymakers advanced the Clarity Act with a 15-9 vote, reaching a key legislative threshold and achieving a bipartisan compromise on stablecoin yield issues. Analysts at Bernstein believe that this provision structurally benefits Circle, further solidifying its market position.

The compromise provision stipulates that issuers may not offer yield on passive-held stablecoin balances equivalent to interest on a bank deposit, but explicitly allows for incentives tied to actual usage, such as transactions, payments, and other rewards based on real-world usage scenarios.

Notably, Circle itself does not directly provide passive yield to USDC holders but implements incentive mechanisms through its partners (such as Coinbase) via distribution arrangements and usage-based reward programs.

Bernstein believes that this legislative text effectively safeguards "usage-based incentives" and the distribution structure related to USDC growth, while also curbing the prior market concern of a "yield race." This competitive model was previously seen as enabling smaller or less liquid issuers to gain market share by offering higher interest rates, a strategy that the new regulations will constrain. This view was presented in a client report on Monday by a team led by Gautam Chhugani.