CLARITY Act Could Expand Service-Based Revenue Models in Crypto
Summary
- Passage of the CLARITY Act could reshape crypto revenue models.
- Section 404 would restrict simple yield products offered by digital asset service providers (DASPs) and require revenue models built on lending, collateral and treasury management.
- Bolono said the decentralized finance (DeFi) market could benefit, and that easing regulatory uncertainty could catalyze inflows of large pools of capital.
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Debate over the CLARITY Act is intensifying in the US Congress, and passage of the bill could reshape how the crypto industry generates returns, CoinDesk reported on May 23.
Joe Bolono, chief commercial officer at STBL, told CoinDesk the industry has so far depended largely on investment gains. If the CLARITY Act passes, he said, it could create a framework for earning revenue through the use of digital assets.
The key provision is Section 404. It would restrict digital asset service providers, or DASPs, from offering yield products based solely on holding assets. That would force the industry to build compliant revenue models around lending, collateral and treasury management instead of simple deposit rewards.
In a regulated market, all of those processes could be automated through AI, Bolono said. He added that decentralized finance, or DeFi, could benefit. Clearing up regulatory uncertainty would also allow large pools of capital to enter the market, which he described as the biggest catalyst.
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