If the Clarity Act passes as it was in 2016, then the only viable scenario for stablecoin yields will revert to DeFi. All custodial stablecoin issuers/intermediaries will be prohibited from providing yield to user balances in any form. This includes the previous loophole in the GENIUS Act where projects would give rewards to CEXs, who would then distribute them to users. Non-custodial DeFi is unrestricted. T1: Aave, Sky, Morpho T2: Pendle T3: On-chain strategic projects TX: Decentralized stablecoins T1 projects are the most obvious beneficiaries. Pendle may benefit from a booming on-chain interest rate market. Furthermore, there are on-chain strategic projects, those that balance yields across various DeFi projects. Reflect, the co-founder of this post, falls into this category. Previously, they lost market attention because CEXs and centralized institutions dominated this field, both in terms of user experience and yield. However, if this is restricted, these on-chain projects may regain attention. Decentralized stablecoins are a matter of opinion, so I won't elaborate. In summary, the core benefits are: all DeFi protocols that allow users to control their funds and generate real economic activity and returns through smart contracts. (Coinbase has explicitly opposed this, as it directly impacts Circle USDC's business, but the banking industry will likely maintain this stance; we'll have to see if there are any changes in the negotiations.)