Senators Thom Tillis and Angela Alsobrooks reached a compromise on the CLARITY Act on May 1, banning passive stablecoin yield while allowing activity-based rewards tied to payments and platform usage. This deal reduces some investor uncertainty, but Daniel Reis-Faria, CEO of ZeroStack, remains cautious. He notes that larger investors are still hesitant because the full implementation rules are not yet in place—only the principle has been agreed upon. The Senate Banking Committee plans a markup in mid-May, with a floor vote targeted before the Memorial Day recess. Despite the positive movement, Reis-Faria emphasizes that until the regulatory framework is fully detailed, big players will likely adopt a wait-and-see approach. Polymarket odds for the CLARITY Act passing in 2026 jumped significantly after the deal, but JPMorgan had previously described its passage as a key catalyst for digital assets. The one-year window for joint rulemaking by the SEC, CFTC, and Treasury adds ambiguity that reins in institutional enthusiasm. Standard Chartered estimates that uncapped stablecoin yield could shift up to $500 billion from banks by 2028, explaining ongoing banking industry resistance. Overall, the deal is a step forward, but not a game-changer for major investors.