For most everyday stablecoin holders on centralized platforms, the immediate practical impact is limited but the medium-term uncertainty is real. Flat APY products that pay a set percentage on a held stablecoin balance with no usage condition are the primary target of the proposed restrictions, and those products may need to be restructured or discontinued once rules take effect. If you are currently earning a passive return on stablecoins held on a centralized exchange without any usage requirement, it is worth verifying whether that product carries a genuine activity condition or whether it is a passive yield product that could be affected by the final rules. Platforms may begin reframing flat-yield products as activity-based before formal rules are finalized, and marketing language may shift faster than the underlying economics — making it important to look at the actual mechanics of how a reward accrues rather than how it is labeled.

For DeFi users, the picture is more stable in the near term. The CLARITY Act compromise appears focused on centralized exchanges and custodial platforms rather than non-custodial smart contracts, meaning a user supplying USDC to a decentralized lending protocol and earning a variable rate does not appear to be the primary target of the proposed restrictions. The total stablecoin market subject to these rules stood at approximately $323 billion as of early May 2026, with USDC holding roughly 25% market share and Tether's USDT at approximately 59%. The rulemaking period following any eventual enactment will be the highest-uncertainty window for centralized platform users, as competing interpretations of what constitutes genuine platform activity get resolved through regulatory guidance and potentially litigation before a stable compliance framework emerges.