CLARITY Act’s Stablecoin Yield Restrictions Could Benefit Foreign Currencies, Not USD

The Digital Chamber, a cryptocurrency advocacy group, is urging the US Congress to preserve the ability of payment stablecoins to generate yield by retaining exemptions in Section 404 of the proposed CLARITY Act. The group argues that banning these yields, which they distinguish from traditional bank interest, would stifle domestic innovation and 'undermine dollar dominance.' If US-regulated stablecoins cannot participate in DeFi markets, global capital will shift to foreign-issued digital assets or offshore entities, reducing demand for the USD in the digital economy. The Chamber also noted that a ban could ironically increase user exposure to 'impermanent loss' from passive holding strategies. As a compromise, they suggest mandatory consumer disclosures clarifying that stablecoin yields are not FDIC-insured and recommend a federal 'Deposit Impact' study two years post-enactment to show stablecoins complement traditional banking.

(Source：BeInCrypto)