Gate News reports that on March 16, a community survey regarding the U.S. “Digital Asset Market Transparency Act” (CLARITY Act) showed that crypto users prioritize privacy protection and financial autonomy over stablecoin yield incentives. This result highlights a clear divide between the crypto community and Washington regulators.
The survey was initiated by crypto commentator Paul Barron, focusing on two policy options: stablecoin yields and anti-financial surveillance protections. The results indicate that the vast majority of respondents favor safeguarding user privacy and self-custody rights over earning returns through stablecoins.
The controversy mainly centers on a clause in the Senate version of the bill. According to the draft, the U.S. Department of the Treasury could, under certain circumstances, temporarily freeze or seize crypto assets without a court order. Critics argue that such authority could be extended to some DeFi interfaces or protocols deemed “not fully decentralized,” potentially impacting users’ control over their assets.
For many crypto users, this regulatory arrangement threatens core principles of decentralized finance, including self-custody and financial freedom. Therefore, even though stablecoin yield mechanisms are attractive, they are considered negotiable issues.
However, within Congress, the issue of stablecoin yields has become a major obstacle to advancing the bill. The bill was passed by the House of Representatives in July 2025 with a vote of 294 to 134 but has yet to be approved by the Senate Banking Committee.
Lobbying by traditional financial institutions has also intensified the controversy. The American Bankers Association has consistently advocated banning all forms of stablecoin reward mechanisms, arguing that such yields could weaken the competitiveness of the banking deposit system.
Currently, several senators are attempting to find a compromise. For example, Angela Alsobrooks and Thom Tillis proposed limiting passive yields while preserving activity-based rewards. However, negotiations are still ongoing.
Senate Majority Leader John Thune has stated that the bill is not expected to be considered by the full Senate before April 2026. Analysts note that if the CLARITY Act cannot pass committee procedures by the end of April, the likelihood of it passing this year will significantly decrease.
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