A provision in the proposed CLARITY Act that may prohibit interest payments on stablecoins is raising concerns it could drive capital and innovation to less regulated offshore markets.
Industry Warning: Experts suggest such a ban would likely accelerate the growth of synthetic dollar products and foreign‑issued stablecoins that operate outside U.S. jurisdiction, eroding the competitiveness of the U.S. digital‑asset sector.
Broader Implication: The debate highlights the regulatory tightrope: preventing bank‑like risks without stifling the utility and appeal of dollar‑pegged digital currencies. A heavy‑handed approach risks ceding leadership in the global stablecoin market to other jurisdictions. $BTC $ETH $BNB #BTC #MWAM_Crypto
