Scaramucci says stablecoin yield prohibition undermines US dollar

Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, has recently criticized proposed regulatory efforts aimed at prohibiting yield generation on dollar-backed stablecoins, arguing that such actions are self-defeating for the US monetary system. Scaramucci emphasized that stablecoins serve as the most effective digital export mechanism for the US dollar globally, providing accessibility and utility to billions of international users.

Speaking at a recent conference, Scaramucci contended that yield is a necessary component for widespread adoption, particularly in emerging economies where digital currency users seek to earn a return on their assets while maintaining price stability. If US regulators restrict the ability of stablecoin holders to generate yield, they are effectively pushing international users toward stable assets pegged to competing currencies, such as the Euro, or potentially toward state-backed Central Bank Digital Currencies (CBDCs) developed by other global powers.

According to Scaramucci, the prohibition of yield would stunt innovation within the US DeFi ecosystem and actively diminish the incentives for foreign nations to rely on dollar-denominated assets in the digital sphere. He called for a balanced regulatory framework that recognizes stablecoins as critical infrastructure for maintaining the dollar’s status as the world’s reserve currency, rather than imposing rules that hand a strategic advantage to international competitors.

Source: Scaramucci says stablecoin yield prohibition undermines US dollar