---
title: "Proposed Yield Restrictions on Stablecoins May Hinder US DeFi Innovation"
description: "The Digital Chamber warns that proposed yield restrictions on stablecoins in the CLARITY Act could hinder U.S. DeFi innovation. They argue that banning yield-generating stablecoins may push capital to"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275986417.md"
published_at: "2026-02-14T19:37:38.000Z"
---

# Proposed Yield Restrictions on Stablecoins May Hinder US DeFi Innovation

> The Digital Chamber warns that proposed yield restrictions on stablecoins in the CLARITY Act could hinder U.S. DeFi innovation. They argue that banning yield-generating stablecoins may push capital towards foreign or unregulated assets, threatening the dollar's dominance. Banking lobbyists oppose yield payments due to regulatory concerns. The Digital Chamber suggests regulatory compromises, including better consumer disclosures, to balance innovation and regulation. This debate underscores the tension between regulators and the digital finance sector, with potential significant impacts on DeFi and the U.S. dollar's role in the digital economy.

The Digital Chamber has raised concerns over the proposed yield restrictions on stablecoins outlined in the CLARITY Act, warning that such measures could stifle innovation in the U.S. decentralized finance (DeFi) sector. According to NS3.AI, the organization argues that banning yield-generating stablecoins might drive capital towards foreign-issued or unregulated digital assets, potentially undermining the dollar's dominance in the digital economy. Banking lobbyists have expressed opposition to yield payments on stablecoins, citing regulatory and financial stability concerns. In response, the Digital Chamber has proposed regulatory compromises, including enhanced consumer disclosures and comprehensive impact studies, to address these issues while fostering a conducive environment for innovation. The debate highlights the ongoing tension between regulatory bodies and the digital finance industry as they navigate the complexities of integrating stablecoins into the broader financial system. The outcome of this legislative proposal could have significant implications for the future of DeFi and the role of the U.S. dollar in the digital economy.

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## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Russia Reconsiders Stablecoin Ban as Central Bank Signals Policy Shift | Russia's central bank is reconsidering its stance on stablecoins, indicating a potential policy shift. First Deputy Chai | [Link](https://longbridge.com/en/news/275971187.md) |
| XRP Is Ripple's 'North Star' Amid Ambitions to Build $1 Trillion Firm, Says CEO | Ripple CEO Brad Garlinghouse expressed confidence that the company could achieve a $1 trillion valuation, emphasizing th | [Link](https://longbridge.com/en/news/275802215.md) |
| Deel taps MoonPay to roll out stablecoin salary payouts in UK, EU | Global payroll platform Deel is partnering with MoonPay to offer stablecoin salary payouts to employees in the UK and EU | [Link](https://longbridge.com/en/news/275644387.md) |
| Exchange Any Asset, Anytime, Anywhere: LMAX Group Introduces Omnia Exchange, Built for the Digital Capital Markets of the Future | LMAX Group has launched Omnia Exchange, a next-generation platform enabling real-time asset conversion via a single API. | [Link](https://longbridge.com/en/news/275432128.md) |
| Singapore’s OKX Ventures backs STBL in strategic partnership with Hamilton Lane, Securitize to launch RWA-backed stablecoin on X Layer | OKX Ventures has made a strategic investment in STBL, a stablecoin provider, to launch a real-world asset-backed stablec | [Link](https://longbridge.com/en/news/275712376.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.