The controversy surrounding the US Cryptostructures Act's ban on stablecoin yields may accelerate the flow of funds to a "synthetic dollar" and trigge...

According to a report by CoinTelegraph, experts warn that proposed restrictions on stablecoin yields under the US Clarity Act could drive demand for offshore and synthetic dollar products as investors seek yields outside regulated markets. Under the existing Genius Act, payment-type stablecoins like USDC must be fully backed by cash or short-term US Treasury bonds and cannot pay interest directly, thus being considered "digital cash." Colin Butler, Head of Markets at Mega Matrix, stated that prohibiting compliant stablecoins from offering yields to holders would not protect the US financial system but would instead marginalize regulated institutions and accelerate capital migration outside regulatory boundaries. Currently, the digital yuan already has interest-bearing capabilities, and Singapore, Switzerland, and the UAE are advancing frameworks for interest-bearing digital assets. A US ban on yields for compliant dollar stablecoins could weaken global competitiveness.