The debate over the CLARITY Act's ban on yield-generating stablecoins has intensified, raising concerns about the United States' position in the global digital currency market. Anthony Scaramucci, founder of SkyBridge Capital, warned that preventing US stablecoins from offering returns could make the dollar less attractive internationally. With China's digital yuan capable of paying interest, he argues that US restrictions risk limiting the competitiveness of dollar-linked tokens and reducing their adoption in emerging markets.
In brief
- Scaramucci warns that US restrictions on stablecoin yields could hurt their global competitiveness as banks resist competition and China offers interest on its digital currency.
- Brian Armstrong said limiting yields could weaken the global competitiveness of US stablecoins and noted that it would not change lending.
- The stablecoin market continues to expand with a total capitalization of 311.5 billion and USDT controlling 59%.
Scaramucci and Armstrong sound the alarm on the limits of returns
Scaramucci described the system as flawed, pointing out that traditional banks resist competition from stablecoin issuers by blocking the payment of returns. Meanwhile, China is using yields as a tool to boost the attractiveness of its digital currency. He questioned whether developing countries would prefer a payments network that offers returns or one that does not, highlighting the potential global implications of U.S. policy choices.
Prior to Anthony Scaramucci's recent comments, Coinbase CEO Brian Armstrong had already expressed concerns about US restrictions on yield-generating stablecoins. Armstrong pointed out that limiting the returns of these tokens could weaken their global competitivenessespecially as other countries explore ways to make digital currencies more attractive.
He insisted that while yield policies will not drastically change lending practices in the United States, they play a crucial role in the ability of American stablecoins to remain competitive globally. Armstrong added that “Rewards (or even interest payments) benefit ordinary people just like community lending does. We must let the market do both. »
To contextualize these concerns, China's central bank recently allowed commercial banks to pay interest on digital yuan holdings, a policy effective from January 1, 2026. This development shows how yield policies can boost the appeal of a digital currency, giving China a clear advantage in international markets.
Growth of stablecoins amid US policy measures
The restriction of yield-bearing stablecoins has become a contentious point between regulators and leaders of the cryptosphere. While some policymakers view the CLARITY Act as a constructive step toward regulating digital assets, others believe that banning returns could hamper innovation and market competitiveness.
Previous regulatory measures had set the stage for the operation of US stablecoins. The GENIUS Act, signed last July, established a framework for dollar-backed stablecoins and introduced a ban on yield-generating tokens. The CLARITY Act built on this foundation, strengthening the framework and clarifying the rules for how these digital assets operate.
Separately, Brian Moynihan, CEO of Bank of America, said that if yield stablecoins were allowed, they could remove up to $6 trillion from U.S. bank deposits, which could limit banks' lending capacity and put upward pressure on borrowing costs.
Even with these considerations, stablecoins continue to grow, with a total capitalization of $311.5 billion and USDT holding almost 60%.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
