"System is broken": Scaramucci explained how US banks are killing stablecoins in favor of China - ForkLog: cryptocurrencies, AI, singularity, future

# “The system is broken”: Scaramucci explains how US banks are killing stablecoins in favor of China

The ban on “stablecoins” with yields in the Clarity Act bill puts the US dollar at a disadvantage compared to China’s digital yuan. This opinion was expressed by SkyBridge Capital founder Anthony Scaramucci.

The whole system is broken: The Banks do not want the competition from the stable coin issuers so they’re blocking the yield in the meantime the Chinese are issuing yield so what do you think the emerging countries will choose as a rail system the one with or without yield?

— Anthony Scaramucci (@Scaramucci) January 16, 2026

“The system is broken,” — commented the expert

According to him, financial organizations block such opportunities to avoid competition with stablecoin issuers. Meanwhile, the People’s Bank of China has allowed commercial banks to pay interest on digital yuan deposits (CBDC) since January.

“Banks do not want competition from stablecoin issuers, so they block the opportunity to earn income. At the same time, the Chinese offer yields. Which system do you think developing countries will choose — the one with yields or without?” — wrote Scaramucci

Coinbase CEO Brian Armstrong shares a similar view. He previously warned that banning yields would make American “stablecoins” less competitive in currency markets.

China has decided to pay interest on their own stablecoin, because it benefits ordinary people, and they recognize it as a competitive advantage.

I worry we are missing the forest through the trees in the U.S. Rewards on stablecoins will not change lending one bit — but it does… https://t.co/nrpa8eSKUs

— Brian Armstrong (@brian_armstrong) January 7, 2026

“Rewards (and even paying interest) benefit ordinary people, just like local lending. We should allow the market to use both tools,” — he emphasized

Clarity Act Issue

Earlier, Armstrong opposed the current version of the Clarity Act. The bill prohibits digital asset providers from paying users income solely for owning stablecoins.

The document only allows rewards for active participation in the ecosystem. Exceptions are made for income from:

• providing liquidity;
• participating in protocol governance;
• staking;
• other actions that ensure network operability.

Coinbase’s head considers the revised version of the initiative “significantly worse than the current situation.” According to him, the bill effectively bans tokenized stocks, restricts the DeFi sector, violates user rights, and weakens the role of the CFTC.

“We would prefer not to have any law at all than such a one. We hope we all can come to a better solution,” he noted

Recall that JPMorgan analysts named the Clarity Act one of the key drivers of the crypto industry in 2026.