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Backlash Grows Over CLARITY Act’s Stablecoin Yield Ban as Dollar Edge Questioned

Critics say prohibiting rewards on dollar-backed tokens would handicap U.S. digital rails against China’s interest-bearing e-CNY.

Overview

  • The bill would bar certain types of yield or interest linked to holding payment stablecoins, closing off reward programs used by some platforms.
  • The Senate Banking Committee has paused the legislation’s markup, leaving the yield question unresolved and stakeholder support fractured.
  • Anthony Scaramucci and other industry voices warn the restriction could make U.S. stablecoins less attractive globally and weaken dollar-linked payment rails.
  • Bank executives back strict limits to safeguard deposits, with Brian Moynihan cautioning that yield outside banks could drive significant outflows and affect lending.
  • China now allows commercial banks to pay interest on digital yuan balances, a shift that critics say could draw users—especially in emerging markets—to e-CNY over non-yielding U.S. options.