Crypto
Stablecoin interest ban could trigger capital outflows abroad
A U.S. CLARITY bill banning interest payments on stablecoins could increase the risk of capital leaving regulated markets for overseas venues or opaque financial structures, Cointelegraph reported on Jan. 24. Mega Matrix market head Colin Butler warned that legal stablecoins without yield could drive funds offshore or into out-of-regulation finance. Under the newly enacted GENIUS law, payment stablecoins such as USDC must be fully backed by cash or short-term Treasuries and cannot pay interest directly to holders.
