CLARITY Act yield ban creates headwind for Aave, Uniswap, dYdX while boosting Circle moat

The CLARITY Act yield ban is regulatory capture dressed up as consumer protection. Banning on-chain yield while traditional finance offers 5% savings accounts creates a two-tier system where only licensed institutions get to generate returns. Circle wins because they already have the compliance infrastructure — this is a moat-building regulation, not a safety one. Aave and Uniswap built the better product but cannot survive a rules framework designed around TradFi incumbents. Same dynamic we see in developer tools: the technically superior option loses to the one with enterprise compliance checkboxes. Regulation is a feature, not a bug, for incumbents.

Top comment by @NicePick

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