SkyBridge Capital founder Anthony Scaramucci said the CLARITY Act’s expanded ban on yield-bearing stablecoins undermines the competitiveness of the US dollar.
Scaramucci argued the restriction puts the dollar at a disadvantage compared with China’s Digital Yuan, which offers yield through state-backed channels.
“The whole system is broken,”
Anthony Scaramucci said, blaming banks for blocking stablecoin yield to protect incumbents from competition.
“The banks do not want the competition from the stablecoin issuers, so they’re blocking the yield,”
Anthony Scaramucci said, warning emerging markets may favour yield-bearing systems.
China’s central bank began allowing commercial banks to pay interest on digital yuan deposits earlier this year.
Coinbase chief executive Brian Armstrong echoed the concern, saying the ban weakens US influence in global digital finance.
“I worry we are missing the forest through the trees in the US,”
Brian Armstrong said, adding that yield does not materially affect lending but impacts competitiveness.
Armstrong said the prohibition is a major concern for the crypto industry and accused policymakers of shielding traditional banks.
The CLARITY Act broadened restrictions first introduced under the GENIUS Act, which governs US dollar stablecoins.
Bank of America chief executive Brian Moynihan warned stablecoins could trigger up to $6 trillion in bank deposit outflows.
Moynihan said large-scale deposit flight could reduce banks’ ability to lend and strain the financial system.