Anthony Scaramucci, founder of SkyBridge Capital, has issued a stark warning: the prohibition on stablecoin yield in the proposed CLARITY Act could seriously undermine the global competitiveness of the US dollar.
At the heart of the issue is a simple economic reality — capital flows to where it earns returns.
Under the current draft of the CLARITY Act, crypto exchanges and service providers in the United States would be barred from offering yield on stablecoins. While intended to protect traditional banks, Scaramucci argues that the move risks pushing global users toward alternatives — particularly China’s Digital Yuan, which now pays interest.
“The banks do not want the competition from the stablecoin issuers, so they’re blocking the yield. In the meantime, the Chinese are issuing yield. So what do you think emerging countries will choose — the rail with yield, or the one without?”
— Anthony Scaramucci
Why Stablecoin Yield Matters
Stablecoins are increasingly used as digital dollars across emerging markets — for savings, remittances, and everyday commerce. In many regions, they already function as a de facto financial infrastructure.
Removing yield from US-based stablecoins means:
- Users earn nothing for holding digital dollars.
- Competing systems — like China’s Digital Yuan — become more attractive.
- The US dollar loses strategic advantage in the race for global settlement rails.
Coinbase CEO Brian Armstrong echoed the concern, stating that banning yield on stablecoins could make the dollar less competitive in foreign exchange markets.
“Rewards on stablecoins will not change lending one bit, but it does have a big impact on whether US stablecoins are competitive.”
— Brian Armstrong
Banks vs. Innovation
Critics argue that the yield ban is driven less by systemic risk and more by banking industry pressure. Traditional banks fear that yield-bearing stablecoins could trigger a massive outflow of deposits.
That fear isn’t hypothetical.
Bank of America CEO Brian Moynihan recently warned that stablecoins could lead to as much as $6 trillion in deposit outflows from the traditional banking system — reducing banks’ ability to lend and reshaping the financial landscape.
But Scaramucci and other crypto leaders argue that protecting incumbents at the expense of innovation may cost the US far more in the long run.
In a world where digital currencies are becoming geopolitical tools, restricting the utility of dollar-backed stablecoins may cede ground to rival monetary systems.
The Bigger Picture
The stablecoin debate is no longer just about crypto regulation — it’s about:
- Monetary sovereignty
- Global financial influence
- Who controls the next generation of payment rails
If emerging economies are forced to choose between:
- A non-yielding digital dollar, and
- A yield-bearing digital yuan
the choice may be purely economic — and not in America’s favor.
As global finance moves on-chain, everyday users are increasingly interacting with digital assets — whether through payments, gaming, or digital services. Platforms like KXZ Store bridge this transition by making crypto-native value practical in daily life. With digital gift cards, top-ups, and Web3-friendly services powered by KXZ Points, KXZ Store offers a simple gateway into the digital economy — the same economy now shaping the future of money itself.
In the race for financial relevance, usability and incentives matter. And as Scaramucci warns, yield may decide which currency wins.