Anthony Scaramucci has warned that a new US rule could hand the upper hand to Beijing. Reports say he believes a ban on paying yield to holders of dollar stablecoins will make dollar-linked digital rails less attractive than the digital yuan, which is moving toward paying interest on wallets.
Stablecoin Yield Ban And Dollar Competitiveness“The whole system is broken,” Scaramucci said on X, reacting to the Clarity Act’s restriction that blocks crypto exchanges and service providers in the US from paying yield to stablecoin holders.
The whole system is broken: The Banks do not want the competition from the stable coin issuers so they’re blocking the yield in the meantime the Chinese are issuing yield so what do you think the emerging countries will choose as a rail system the one with or without yield?
Banks And Exchanges Push BackAt the same time, major crypto firms have voiced concern that a hard ban on yield will blunt the competitiveness of US dollar-based token services and could push global users toward alternatives that offer returns.
The debate has also strained support for the bill, with at least one high-profile exchange pulling its backing amid disagreement.
The change went into effect around the start of this year and was presented as a way to encourage people and institutions to try the e-CNY more often.
Money flows respond to yield. If a digital yuan offers returns while US dollar tokens cannot, some governments and firms in emerging markets might favor the payment rails that provide a financial edge.
Regulators now face a tough call. Reports say the choice is between strict limits that curb certain crypto yields and looser rules that could pressure bank deposits. Either route carries tradeoffs for stability, competition, and the global reach of the dollar.
Featured image from Unsplash, chart from TradingView
