Ripple (XRPUSD)

[europa7]

The CLARITY Act Might End Passive Crypto Income in the US
CoinGecko
May 21, 2026

"...The CLARITY Act just cleared a major hurdle, but it comes with a massive catch for stablecoin holders. Find out why the Senate is banning passive interest and what this means for the future of DeFi..."

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Google AI Overview

"...Passive crypto payouts frequently harm long-term tokenomics by creating inflationary supply spirals, triggering sell pressure, and functioning as unsustainable marketing gimmicks. When token rewards exceed network revenue, projects dilute existing holders, devaluing the asset while failing to generate consistent, organic demand..."

The Core Flaws of Passive Payouts

~ Inflationary Dilution: Many protocols generate yield by printing new tokens. If the payout rate exceeds the network's growth, it inflates the circulating supply, rapidly devaluing the token's price.

~ The "Dump" Loop: Users frequently treat passive yields as a cash-out mechanism. Rather than compounding, they routinely sell their reward tokens, driving persistent downward price pressure.

~ Unsustainable Yields: High APYs are often funded by venture capital or unbacked token reserves. Once these subsidies dry up, the yield collapses, causing liquidity providers to abandon the protocol.
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Google AI Overview

"...Crypto yield speculation undermines a project's tokenomics by relying on artificial token inflation to fund unsustainable Annual Percentage Yields (APYs). This creates a "mercenary" ecosystem of short-term farmers who dump their rewards, stripping the project of liquidity, crushing token value, and punishing long-term investors who bear the resulting dilution..."
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Ripple Supports CLARITY Act—Garlinghouse Says 'This Is the Moment'
May 13, 2026
https://news.bitcoin.com/ripple-supports-clarity-act-garlinghouse-says-this-is-the-moment/

"...Ripple and crypto industry leaders backed the Senate’s CLARITY Act ahead of a key markup, citing clearer rules, stronger consumer protections, and U.S. leadership. Ripple’s legal chief cited a report estimating 67 million Americans hold crypto..."