The latest version of the crypto bill Clarity Act is in the spotlight mostly because of its stablecoin rules. In practice, it may land hardest on decentralized finance (DeFi) and tokens tied to it, according to a report by 10x Research.

At the center of the proposal is a ban on offering yield — or anything resembling it like rewards — on stablecoin balances. That effectively ends the idea of stablecoins as onchain savings products and redefines them as pure payment rails.

“This represents a clear re-centralization of yield,” wrote Markus Thielen, founder of 10xResearch. This is because the proposal pulls back yield into banks, money market funds and regulated wrappers, leaving crypto-native platforms with less room to compete on…