The CLARITY Act, recently approved by the Senate Banking Committee, is set to redefine the landscape for decentralized finance (DeFi) and stablecoin yields in the U.S. The legislation clarifies regulatory boundaries between the SEC and CFTC, placing digital commodities under the CFTC's jurisdiction and establishing safe harbor rules for DeFi protocols. This move is expected to attract significant institutional capital into DeFi, as entities like BlackRock and Deutsche Bank can now participate without regulatory ambiguity. However, the Act also blocks mainstream channels for earning passive income from stablecoins, compelling capital to seek alternative yield-generating products. Protocols such as Pendle, Morpho, and Maple Finance are poised to benefit, offering compliant, structured yield products that align with the new regulatory framework. These developments mark a pivotal shift in the DeFi ecosystem, as institutional and retail investors converge on compliant, real-world-use-case-driven assets.