Digital Chamber Warns: Stablecoin Yield Ban Could Hurt US Innovation

[cryptobro]

The Digital Chamber is urging Congress to protect yield-generating capabilities for payment stablecoins under the proposed CLARITY Act.

The group specifically wants lawmakers to preserve exemptions in Section 404, which distinguish traditional bank “interest” from DeFi-based rewards earned through liquidity provision.

According to the Chamber, removing these exemptions could effectively outlaw core DeFi mechanics for US-regulated stablecoins — pushing innovation offshore and weakening America’s leadership in digital finance.

Their warning is clear: restricting stablecoin participation in DeFi could undermine dollar dominance in the evolving digital economy.

[madtrader]

section 404 exemptions being at risk… feels like regulators just don’t get defi