CLARITY Act Stalls Before 2030, DeFi and Stablecoin Sectors Expected to Grow

iconFinbold
Share
This is the logo of the coin.
XRP
$1.38-2.92%
This is the logo of the coin.
ADA
$0.2129-3.35%
AI summary iconSummary
Stablecoin regulation remains in focus as the CLARITY Act faces delays, with U.S. Senator Cynthia Lummis pushing for passage by 2030 on September 15, 2026. She warned that a failure could shift over a trillion dollars in traditional deposits to crypto, especially in DeFi and stablecoins. The DeFi TVL stands at $88.172 billion, while stablecoins hit $305.607 billion. The CFT (Countering the Financing of Terrorism) provisions in the bill draw attention. Polymarket gives the Act a 17% chance of passing in 2026.

As Cynthia Lummis, a United States Senator from Wyoming, championed the urgency for the passage of the CLARITY Act, a bill set to create clear rules for the crypto industry, on September 15, 2026, over a trillion U.S. dollars in deposits from traditional banks is on the line and likely to benefit the cryptocurrency industry.

Lummis argued that if the current administration, under President Donald Trump, fails to enact the CLARITY Act into law, the next real opportunity to pass it could be in 2030.

“If the Clarity Act doesn’t pass this Congress, the next real opportunity to bring market structure legislation back up is 2030. That’s years of jobs, investment, and tax revenue we can avoid squandering if we finish this now,” Lummis stated in an X post analyzed by Finbold on September 7.

What Crypto sectors are set to thrive if CLARITY Act stalls before 2030

The CLARITY Act has gained significant support as data shows that allowing Decentralized Finance (DeFi) protocols to pay interest or yield on payment stablecoin holdings may reduce community bank lending by $850 billion, according to an ICBAanalysis.

This report highlighted that the sharp decline in credit availability stems directly from an anticipated $1.3 trillion drain on total community bank deposits to DeFi protocols that have more favourable terms.

At press time, the DeFi space had $88.172 billion in total value locked (TVL), according to metrics from DeFiLlama. Meanwhile, the stablecoin market capitalization was at $305.607 billion.

All DeFi TVL. Source: DeFiLlama

While traditional U.S. banks yield an average national Annual Percentage Yield (APY) of about 0.38%, DeFi protocols routinely deliver 4% to more than 8% APY on stablecoins through automated, peer-to-peer lending.

With the U.S. Treasury estimating stablecoins to hit trillions of dollars by 2030, a stalled CLARITY Act could accelerate this growth. Consequently, the broader DeFi and crypto industry could benefit.

Cryptocurrency traders lower odds of this bill passing in 2026

At the time of reporting, the odds of the CLARITY Act getting signed into law in 2026 were at 17% on Polymarket, a decentralized prediction market platform.

Contract for the CLARITY Act getting signed into law in 2026. Source: Polymarket

This contract is well positioned to experience heightened volatility in the coming days, as the U.S Senate prepares for this bill’s vote on Tuesday next week.

Featured image via Shutterstock

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.