Scaramucci Warns CLARITY Act Stablecoin Ban Threatens Dollar Dominance

VADODARA, January 18, 2026 — Anthony Scaramucci, founder of SkyBridge Capital, has issued a stark warning that the CLARITY Act's proposed ban on stablecoin interest payments could systematically weaken the U.S. dollar's global standing. This latest crypto news highlights a critical regulatory inflection point where U.S. policy missteps could accelerate capital migration to competing digital currency systems, particularly China's digital yuan. Market structure suggests this regulatory friction creates a Fair Value Gap (FVG) in dollar liquidity that could persist for multiple quarters.

Market Context & Background

Historical cycles indicate that currency competitiveness shifts often precede major crypto volatility events. Similar to the 2021 correction triggered by China's mining ban, which redistributed global hash rate and created persistent Order Blocks in Bitcoin's price action, the current regulatory confrontation mirrors that structural disruption pattern. The U.S. dollar's dominance has historically correlated with Treasury yield attractiveness; removing yield mechanisms from dollar-pegged stablecoins effectively creates a synthetic negative carry trade. According to on-chain data from Glassnode, stablecoin supply ratios have shown decreasing velocity when regulatory uncertainty spikes, suggesting institutional capital is prepositioning for potential policy shocks. This development occurs alongside other regulatory pressures, such as the final closure of the Ripple lawsuit under res judicata principles, which set legal precedents limiting political interference in crypto enforcement.

What Happened?

According to Cointelegraph, Scaramucci specifically highlighted that China's central bank began paying interest on digital yuan deposits in January 2026, creating a direct competitive yield advantage. He argued that a U.S. stablecoin system without interest would struggle to maintain global adoption. Previously, Coinbase withdrew its support for the market structure bill, citing concerns over blocked stablecoin reward features. The White House subsequently stated it would also withdraw support unless Coinbase returned to discussions with an acceptable proposal on stablecoin yields. This sequence creates a classic regulatory Gamma Squeeze scenario where binary policy outcomes force extreme positioning adjustments.

Technical Analysis & Price Action

Bitcoin's current price at $95,392 sits within a critical Volume Profile node between $92,000 and $98,500. The 50-day moving average at $93,800 provides immediate dynamic support, while the 200-day at $89,200 serves as a longer-term structural level. RSI readings at 54 indicate neutral momentum, but regulatory news flow typically impacts volatility before directional price action. Bullish Invalidation is set at $89,200 (200-day MA break), which would signal a failure of the current liquidity consolidation. Bearish Invalidation rests at $102,000, a previous resistance zone that would confirm institutional accumulation above key psychological levels. Market structure suggests that stablecoin regulatory uncertainty could trigger a Liquidity Grab below $92,000 to flush out weak hands before any sustained rally.

By The Numbers

Why It Matters

For institutions, this regulatory shift threatens the foundational arbitrage between traditional finance yield curves and crypto-native yield mechanisms. A ban on stablecoin interest would force capital to seek yield elsewhere, potentially increasing correlations between altcoins and traditional risk assets during stress periods. For retail, it reduces the utility of holding dollar-pegged stablecoins as savings vehicles, pushing activity toward decentralized finance (DeFi) protocols or offshore jurisdictions. The structural impact resembles the 2023 banking crisis where stablecoin outflows preceded broader market deleveraging. According to the Federal Reserve's monetary policy reports, dollar dominance relies on network effects and yield attractiveness; undermining either component accelerates alternative currency adoption.

Community Sentiment

Market analysts on X/Twitter highlight the geopolitical dimension, with one noting: "China's digital yuan yield strategy is a direct attack on dollar hegemony in digital finance." Another observed that "Coinbase's withdrawal from negotiations signals industry resistance to yield prohibitions, similar to previous battles over ETF approvals." The consensus suggests that without competitive yields, USD stablecoins could face gradual erosion of market share to yield-bearing alternatives, mirroring the decline of zero-interest bank accounts in high-inflation environments.

Price Prediction / Future Outlook

Bullish Case: Regulatory compromise allows limited stablecoin yields, triggering a relief rally. Bitcoin breaks above $102,000 resistance, targeting the $107,000 Fibonacci extension level as seen in recent technical analysis. Stablecoin inflows increase, providing liquidity for altcoin rallies. Bearish Case: CLARITY Act passes with strict yield ban, causing capital flight from USD stablecoins. Bitcoin breaks $89,200 support, triggering a cascade toward $82,000 (0.618 Fibonacci retracement). Increased correlation with traditional risk-off assets pressures leveraged positions, similar to the recent whale activity amid insider trading scrutiny that highlighted systemic leverage risks.