Analysis: If the crypto market structure bill restricts stablecoin yields, it could lead to capital outflows from the United States.

Industry insiders warn that if the U.S. Crypto Market Structure Act (CLARITY Act) imposes restrictions on stablecoin yields, it could crowd funds out of regulated U.S. markets and into offshore, less transparent financial structures and "synthetic dollar" products. Colin Butler, head of markets at Mega Matrix, stated that prohibiting compliant stablecoins from offering yields to holders would not protect the U.S. financial system; instead, it would marginalize regulated institutions and accelerate capital migration outside regulatory boundaries. Currently, the digital yuan already has interest-bearing capabilities, and Singapore, Switzerland, and the UAE are advancing frameworks for interest-bearing digital assets. If the U.S. bans yields on compliant dollar-denominated stablecoins, it could weaken global competitiveness. It is understood that under the already enacted GENIUS Act, payment-type stablecoins such as USDC must be fully backed by cash or short-term U.S. Treasury bonds and cannot directly pay interest; they are considered "digital cash." (Cointelegraph)