ZeroStack CEO Daniel Reis-Faria says the CLARITY Act stablecoin deal reduces investor uncertainty but has not resolved institutional hesitation yet.
Summary
- Senators Tillis and Alsobrooks reached a CLARITY Act yield compromise on May 1, banning passive stablecoin yield and preserving activity-based rewards.
- Polymarket odds of the CLARITY Act passing in 2026 jumped from 46% to 64% hours after the stablecoin deal landed.
- Reis-Faria says larger investors will still hold back until implementation rules are fully in place, not just agreed in principle.
The stablecoin deal was finalised on May 1 by Senators Thom Tillis and Angela Alsobrooks, drawing a clear line: crypto platforms cannot pay interest on stablecoins in any way that functions like a bank deposit. Activity-based rewards tied to payments and platform use are still permitted.
As crypto.news reported, the Senate Banking Committee is now targeting a markup during the week of May 11, with a Senate floor vote targeted before the May 21 Memorial Day recess.
“With lawmakers getting closer to a deal on stablecoin rules, that takes away one of the bigger reasons investors have been holding back,” said Daniel Reis-Faria, CEO of ZeroStack.
The institutional hesitation that remains
But Reis-Faria stopped short of calling this a turning point. “Right now, it’s not the rules themselves. It’s not knowing how they’re going to play out over time. That’s what’s keeping larger players from stepping in,” he said.
As crypto.news documented, JPMorgan had previously described CLARITY Act passage by midyear as a “key positive catalyst” for digital asset markets. The SEC, CFTC, and Treasury are directed to jointly issue implementation rules within one year. That one-year window is precisely the ambiguity Reis-Faria is pointing to.
Blockchain Association CEO Summer Mersinger said the yield resolution “brings us meaningfully closer to comprehensive market structure legislation becoming law” and urged the committee to move without delay.
As crypto.news tracked, five steps remain: Senate Banking markup, committee vote, a 60-vote floor threshold, reconciliation with the Agriculture version, and reconciliation with the House text.
“This advancement helps, but it’s not a full shift yet,” Reis-Faria said. “Until there’s more clarity, you’re still likely to see a more cautious approach from bigger players.”
As crypto.news noted, Standard Chartered estimated that uncapped stablecoin yield could redirect up to $500 billion in deposits from traditional banks by 2028, explaining the banking lobby’s sustained resistance throughout negotiations.
