Yesterday, Circle ($CRCL) shares plunged more than 20% at one point, as market panic was triggered by the latest draft of the Clarity Act, which proposes an outright ban on centralized platforms offering "passive" stablecoin interest. This raised fears that the incentive to hold USDC would be significantly diminished.
But on-chain data tell a different story. The chart shows yield-bearing stablecoin sUSDS (stablecoin of Sky Protocol, used to be MakerDAO) has been quietly climbing toward $6B since late 2024. This isn't a panic reaction to last week's legislation; it's a structural shift that's been underway for over a year.
Capital isn't leaving crypto — it's moving from centralized platforms to DeFi protocols that generate yield through U.S. Treasury-backed RWAs. The Clarity Act didn't start this migration. It just named it.
Written by Sunny Mom