Anthony Scaramucci, founder of SkyBridge Capital, has criticized the CLARITY Act for potentially weakening the US dollar's competitiveness against China's digital yuan. The Act prohibits yield on US stablecoins, which Scaramucci argues could reduce their international appeal compared to the interest-bearing digital yuan. This regulatory move may shift market preference towards foreign digital currencies, particularly in emerging economies. The CLARITY Act's restrictions prevent crypto exchanges and service providers from offering interest on stablecoins, a feature that China's digital yuan provides, making it more attractive for global transactions. Critics, including Scaramucci, warn that this could lead to a competitive disadvantage for the US dollar, as foreign digital currencies with yield options might dominate international markets. Banking executives also express concern that the Act could lead to significant outflows from traditional bank deposits to stablecoins, potentially affecting banks' lending capacities. The debate continues over whether the Act prioritizes protecting legacy banks over maintaining the dollar's global competitiveness, with industry leaders emphasizing the risk of losing influence in digital finance.