"The System is Broken": Scaramucci Explains How U.S. Banks Are Undermining Stablecoins for China's Benefit

Anthony Scaramucci, founder of SkyBridge Capital, has criticized the Clarity Act for placing U.S. stablecoins at a competitive disadvantage compared to China's digital yuan. He argues that current banking regulations are inhibiting stablecoins by prohibiting yield payments, thereby benefiting Chinese financial institutions that offer interest on their digital currency.

“The whole system is broken. Banks do not want competition from stablecoin issuers, blocking the yield while the Chinese provide it. What will emerging economies choose?” — Anthony Scaramucci (@Scaramucci) January 16, 2026

Scaramucci claims that banks are stifling the potential of stablecoins to maintain their dominance. In contrast, the People's Bank of China has encouraged commercial banks to offer interest on deposits in digital yuan since January.

“Which system do you think developing countries will choose — the one with yield or without?” he added.

Brian Armstrong, CEO of Coinbase, shares similar concerns, emphasizing that the restrictions imposed by the Clarity Act undermine American stablecoins' competitiveness globally. He noted that Chinese stablecoins, which pay interest, provide a competitive edge that could attract users from developing regions.

“Rewards on stablecoins will not change lending, but they benefit ordinary people, just like local lending,” — Brian Armstrong (@brian_armstrong) January 7, 2026

Armstrong has been a vocal critic of the Clarity Act, stating it limits the ability of digital asset providers to offer returns to users simply for holding stablecoins, a restriction he believes will hinder the growth of the industry.

He argues that it would be preferable to have no legislation than to pass the current bill, which he views as detrimental to the rights of users and the DeFi sector. Analysts from JPMorgan have noted that the Clarity Act is a crucial factor influencing the crypto market's evolution in 2026.