U.S. CLARITY Act May Impact Stablecoin Market Dynamics

The proposed U.S. CLARITY Act includes a potential prohibition on interest payments for stablecoins. According to NS3.AI, experts caution that this could drive capital towards less regulated offshore markets. Industry analysts suggest that such a move might encourage the expansion of synthetic dollar products that operate in regulatory gray areas. This development could undermine the competitive standing of U.S.-based stablecoin markets.