Woofun AI reports that the proposed U.S. Clarity Act may catalyze a structural transition in the crypto industry, moving away from passive holding strategies toward active, compliant yield generation. Central to this shift is Section 404, which prohibits Digital Asset Service Providers from offering yields based solely on asset custody, thereby invalidating the traditional 'hold-to-earn' paradigm. Joe Vollono, Chief Business Officer at STBL, argues that this restriction necessitates a pivot to 'use-to-earn' mechanisms, where value accrual depends on active participation in decentralized finance protocols. Consequently, the regulatory framework is expected to accelerate development in treasury management, collateral optimization, automated capital allocation, and on-chain lending systems. Artificial intelligence is projected to serve as a critical layer for coordinating these regulated capital flows, ensuring compliance while maximizing efficiency.

Meanwhile, the legislative process has advanced as the Clarity Act cleared the U.S. Senate Banking Committee, positioning it for a full Senate vote and subsequent reconciliation with the Agriculture Committee’s version. Market participants view this bill as a potential milestone for establishing a comprehensive regulatory regime in the United States. By delineating jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission, the legislation aims to reduce regulatory uncertainty. This clarity is anticipated to lower barriers for large institutional investors, potentially unlocking significant capital inflows into the digital asset ecosystem.