Hi YXI friends,

COIN, CRCL, and HOOD dropped significantly on Tuesday. This coincided with a CLARITY Act update that bans rewards on passive stablecoin balances and structures "economically equivalent to interest”.

However, I personally agree with the approach, though I disagree that this is a major headwind for crypto. Crypto staking as an “opt-in” programme mimics current bank deposits that “opt-in” to long-term savings accounts, since staking should be an active choice. However, the yields after the opt-in are still superior to most savings accounts.

Moreover, blockchain networks like Ethereum and Solana are better equipped than traditional financial infrastructure to scale AI agent payments in the future. As we move into an Agentic AI world, where we control many AI agents, both personally and for work, they are unlikely (and may even be unsafe) to use our main bank accounts for transactions. In contrast, assigning a stablecoin wallet to each agent (and limiting spending) seems like a much more scalable approach. That creates exponentially greater demand for stablecoin transactions than the human transactions of today.

What I write here is merely scratching the surface of what’s possible in the future. It is interesting that Crypto, after 16 years since Bitcoin's birth, may have finally found its true use case. But it is a massive use case that shouldn’t be ignored.

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