U.S. Crypto Framework Act Stablecoin Yield Ban Sparks Controversy, Potentially Accelerating Capital Flows into "Synthetic Dollars" and Triggering Capital Outflows

ChainCatcher reports that, according to CoinTelegraph, experts warn that the proposed yield restriction measures for stablecoins in the US Clarity Act could drive demand for offshore and synthetic dollar products, as investors seek to earn returns outside regulated markets.

It is understood that under the already effective GENIUS Act framework, payment stablecoins like USDC must be fully backed by cash or short-term US Treasuries and cannot pay interest directly, being regarded as “digital cash.” Colin Butler, head of the Mega Matrix market, stated that prohibiting compliant stablecoins from offering yields to holders does not protect the US financial system but instead marginalizes regulated entities and accelerates capital migration beyond regulatory boundaries. Currently, digital renminbi has interest-earning capabilities, and Singapore, Switzerland, and the UAE are advancing interest-bearing digital asset frameworks. If the US bans yield on compliant US dollar stablecoins, it could weaken global competitiveness.