The US Cryptostructure Act's proposed ban on stablecoin yields could drive investors towards offshore and synthetic dollar products, experts warn. The CLARITY Act aims to restrict stablecoin yields, potentially pushing capital outside regulated markets. Under the GENIUS Act, stablecoins like USDC must be fully backed by cash or short-term US Treasury bonds and cannot pay interest, classifying them as "digital cash."
Colin Butler, Head of Markets at Mega Matrix, argues that prohibiting yields on compliant stablecoins may not protect the US financial system but could instead marginalize regulated institutions and accelerate capital migration. With countries like Singapore, Switzerland, and the UAE advancing interest-bearing digital asset frameworks, a US ban could weaken its global competitiveness.
US Stablecoin Yield Ban May Spur Offshore Capital Flight
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