Bloomberg: The revenue-sharing provision of the *Clarity Act* compromise will solidify Circle's leading position, with stablecoin supply hitting a record high, strengthening its position

May 18 marked a pivotal legislative step for U.S. policymakers advancing the Clarity Act, which cleared a key 15-9 vote and locked in a bipartisan compromise on stablecoin yield rules. Bernstein analysts note this provision will structurally benefit Circle, further reinforcing its market position. The compromise text prohibits issuers from offering passive yields on stablecoin balances equivalent to interest on bank deposits, but explicitly allows incentives tied to actual usage—such as rewards for transactions, payments, and other real-world use cases. Notably, Circle does not directly provide passive yields to USDC holders itself; instead, it runs incentive programs through partners like Coinbase, using distribution arrangements and usage-based reward structures. In a Monday client report, Gautam Chhugani-led Bernstein team outlined that this legislative language safeguards "usage-based incentives" and the distribution framework supporting USDC growth, while curbing the prior market concern of a "yield race." Previously, smaller or less liquid stablecoin issuers could gain market share by offering higher interest rates, a strategy the new regulations will constrain.