Scaramucci: Stablecoin Yield Ban Is ‘Currency Warfare’ Suicide
SkyBridge founder argues the CLARITY Act’s stablecoin yield ban hands a strategic advantage to China’s interest-bearing digital yuan.
SkyBridge Capital founder Anthony Scaramucci has launched a blistering attack on the proposed CLARITY Act, arguing its prohibition on yield-bearing stablecoins amounts to unilateral disarmament in a brewing digital currency war with China.
Speaking on the sidelines of the stalled Senate markup, Scaramucci criticized the provision as a protectionist measure for US banks that inadvertently strengthens the digital yuan (e-CNY).
The Yield Gap
The controversy centers on a stark divergence in monetary policy. As of January 1, 2026, the People’s Bank of China (PBOC) officially began paying interest on e-CNY wallets, effectively transitioning the currency from a digital cash equivalent (M0) to a deposit instrument (M1).
Conversely, the US Senate’s CLARITY Act explicitly bans stablecoin issuers from passing yield to users. Scaramucci contends this policy forces global capital toward the asset offering a risk-free return.
“The banks do not want the competition from 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 as a rail system?”
Institutional Gridlock
The yield ban has fractured industry support for the legislation. Coinbase CEO Brian Armstrong withdrew his endorsement of the bill on January 14, calling the latest draft “materially worse than the current status quo.” Armstrong specifically cited the prohibition on rewards as a dealbreaker, arguing it stifles competition to favor legacy institutions.
Legacy banks have lobbied aggressively for the ban. Trade groups estimate that interest-bearing stablecoins could trigger $6.6 trillion in deposit outflows, destabilizing the lending models of regional banks and credit unions.
Market Implications
The legislative impasse leaves US stablecoin issuers like Circle (USDC) and Paxos operating in a gray zone, unable to compete on yield against both DeFi protocols and sovereign CBDCs. With the PBOC aggressively pushing e-CNY adoption in cross-border trade, Scaramucci warns the US is “designing” its own obsolescence by removing the economic incentives that drive currency adoption.
