The current status of the Clarity Act, planned to move to the markup stage in May, with a few key updates: The stablecoin yield issue is basically resolved. Pure passive income is completely prohibited—just parking money to generate yield is not allowed. However, liquidity rewards are permitted, meaning the distribution channels previously handled by CEXs/intermediaries remain intact. This is a positive for existing stablecoin projects. The next phase will focus on **ethics clauses** and **DeFi issues**. ### Ethics Clauses The biggest target here might be the Trump family. This is currently the trickiest political issue, primarily pushed by the Democrats. It proposes restrictions on senior government officials, elected representatives, and their immediate family members from holding, operating, or profiting from crypto assets during their terms. This clearly targets things like WLFI and TRUMP memecoins. The conflict on this point is likely to be intense. The Democrats see it as a must-have, without which they won’t vote in favor. On the other hand, since it directly impacts the Trump family’s interests, Trump himself may be unwilling to sign a bill with such clauses. This could become a roadblock for the bill. ### DeFi Issues The focus here is on developer protection clauses. The previous administration attempted to classify developers writing code as "money transmitters." If the tools they created were used for money laundering or fraud, developers could face legal liability—even if they were completely unaware. The new bill clearly states that non-custodial software developers and open-source code authors are not considered "money transmitters," as long as they do not actually control user funds. They will not bear responsibility. Although there are opposing voices on this, the industry is generally optimistic that consensus can be reached. This is a positive development for DeFi.