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Stablecoin Yield Battle: Banks vs. Crypto

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The CLARITY Act, designed by traditional US banks to prevent deposit flight into high-yield stablecoin products, may face a loophole exploited by Coinbase. The legislation aims to bar crypto firms from offering passive interest on stablecoins, but Coinbase's recent moves suggest a workaround that could undermine the intended firewall. This development highlights the ongoing tension between traditional finance and crypto innovation, with potential implications for market dynamics and regulatory clarity. As lawmakers finalize the framework, the outcome could shape the future of stablecoin yield products and their integration with the broader financial system.

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