Scaramucci Warns US Ban on Stablecoin Yields Threatens Dollar’s Global Edge

The debate over the CLARITY Act’s ban on yield-bearing 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 U.S. stablecoins from offering returns could make the dollar less appealing internationally. With China’s Digital Yuan able to pay interest, he argues that U.S. restrictions risk limiting the competitiveness of dollar-linked tokens and reducing their adoption in emerging markets.

Scaramucci and Armstrong Sound the Alarm on Yield Limits

Scaramucci has described the system as flawed, emphasizing that traditional banks are resisting competition from stablecoin issuers by blocking yield payments. Meanwhile, China is using yield as a tool to enhance its digital currency’s attractiveness. He questioned whether developing countries will favor a payment network that provides returns or one that does not, highlighting the potential global implications of U.S. policy choices.

Prior to Anthony Scaramucci’s recent comments, Brian Armstrong, CEO of Coinbase, had already expressed concern about the U.S. restrictions on yield-bearing stablecoins. Armstrong highlighted that limiting returns on these tokens could weaken their global competitiveness, especially as other countries explore ways to make digital currencies more attractive. 

He stressed that while yield policies may not drastically change lending practices in the U.S., they play a critical role in whether American stablecoins can remain competitive worldwide. Armstrong added that “rewards (or even paying interest) benefits ordinary people just like community lending does. We have to let the market do both.”

Adding context to 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 enhance the appeal of a digital currency, giving China a clear edge in international markets. 

Stablecoin Growth Amid U.S. Policy Moves

The restriction on yield-bearing stablecoins has become a contentious point among regulators and crypto executives. While some policymakers see the CLARITY Act as a constructive step in guiding the digital asset space, others argue that the ban on yields could stifle innovation and market competitiveness.

Earlier regulatory steps had set the stage for how U.S. stablecoins operate. The GENIUS Act, signed in July last year, established a framework for dollar-backed stablecoins and introduced a ban on tokens offering yield. The CLARITY Act has since built on this foundation, tightening the framework and clarifying the rules for how these digital assets can function. 

Meanwhile, Bank of America CEO Brian Moynihan said that if yield-bearing stablecoins were allowed, they could draw as much as $6 trillion out of U.S. bank deposits, which could limit the amount banks can lend and put upward pressure on borrowing costs.

Even with these considerations, stablecoins continue to expand, with total capitalization at $311.5B and USDT holding nearly 60%.