Global discussions on stablecoins have intensified, with the U.S. advancing the Clarity Act to define stablecoin regulations, and debates at the Davos World Economic Forum highlighting differing views on stablecoin interest generation. Coinbase's CEO and the Governor of the Bank of France clashed over whether stablecoins should generate interest, raising questions about the source of such interest and its implications for financial systems. Stablecoin yield mechanisms are being scrutinized, with models like on-chain lending, real-world asset backing, centralized wealth management, and algorithmic subsidies each presenting unique risks and benefits. The Clarity Act aims to address these complexities, focusing on regulatory boundaries and compliance challenges. As stablecoins evolve from exchange mediums to financial infrastructure, understanding their yield generation and associated risks becomes crucial for sustainable financial integration.