Bernstein: The Clarity Act solidifies Circle's yield model and the advantages of stablecoins.

CoinFeed reported on May 18th that, according to The Block, the compromise provisions on stablecoin yields in the US Clarity Act passed a crucial vote. Bernstein believes these provisions effectively end the stablecoin "interest rate arms race," solidifying Circle's model of earning interest spreads from its USDC float. The bill prohibits paying deposit-like interest on passively held stablecoin balances but retains a reward structure linked to real-world usage such as trading and payments. This aligns with Circle's current practice of distributing USDC incentives through partners like Coinbase.