CLARITY Act’s Stablecoin Yield Ban Sparks Concerns Over Dollar’s Future
The proposed CLARITY Act, which seeks to ban yield-bearing stablecoins in the U.S., has ignited a fierce debate about the potential erosion of the dollar's dominance in global digital finance. Critics argue that prohibiting yields on dollar-pegged stablecoins could cede ground to competitors like China's digital yuan, which actively offers returns to holders.
Anthony Scaramucci and other industry figures warn that the legislation risks undermining the dollar's role as the backbone of digital asset infrastructure. Traditional banks, however, support the ban, fearing that yield-bearing stablecoins could trigger mass deposit outflows and destabilize the financial system.
The clash highlights a pivotal regulatory dilemma: how to balance innovation with stability while maintaining U.S. competitiveness in an increasingly fragmented digital currency landscape.
