Financial experts are issuing serious warnings regarding the US Crypto Market Structure Bill also known as CLARITY Act, suggesting that tightening yield regulations could backfire, weakening the competitiveness of the digital dollar.
🔸 Colin Butler, states that if the US bans compliant stablecoins from offering yields, capital will not remain in the regulated system. Instead, it will flow to less transparent offshore financial structures or move to risky synthetic dollar products.
🔸 While the US struggles with bans, major competitors are already a step ahead. CN digital yuan already features interest bearing capabilities; Singapore, Switzerland, and the UAE are also finalizing legal frameworks for yield bearing digital assets.
🔸 Currently, under the enacted GENIUS Act, payment stablecoins like USDC must be fully backed by cash/treasuries and are prohibited from paying direct interest. Increasing restrictions could cause the US to shoot itself in the foot in the digital currency race.
Between safety with no yield in the US, and high risk with attractive rates in offshore markets, where will your smart money choose to dock?
News is for reference, not investment advice. Please read carefully before making a decision.
