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A new U.S. crypto market structure bill draft has intensified conflict between banks and the crypto industry, with a proposed ban on interest or passive yield payments tied to payment stablecoins emerging as a central battleground. The provision aims to prevent stablecoins from functioning like blockchain-based savings accounts that could draw deposits away from traditional banks, though certain activity-based rewards would still be permitted. Crypto executives argue this eliminates a key retail advantage, while banking groups see it as necessary to protect the traditional system. Despite these restrictions, the bill offers broader protections for the crypto industry, including clearer legal categories for digital assets, registration pathways for firms, and safeguards for self-custody wallets. For retail users, the outcome is mixed: they may gain regulatory clarity and stronger consumer protections but likely lose easy access to passive yield from stablecoin holdings.

Indonesia has blocked access to the prediction market platform Polymarket, joining a growing global regulatory crackdown. The ban was enacted after a widely shared bet on the premature end of President Prabowo Subianto's term drew attention. Authorities declared that platforms facilitating real-money wagers on events, even using crypto or blockchain, constitute illegal gambling. The government is also targeting social media accounts promoting such services and warning the public against participation. This move aligns with actions taken by other jurisdictions. Several countries, including Taiwan, Thailand, China, India, Singapore, Colombia, and Argentina, have previously restricted or blocked Polymarket, often citing its unlicensed gambling operations. In March, Brazil's central bank banned prediction markets like Polymarket over regulatory non-compliance. In the United States, the sector faces scrutiny from lawmakers. A formal investigation was recently launched into Polymarket and Kalshi regarding suspicious trades and compliance measures, coinciding with legal setbacks for the companies in Nevada and Washington.

USDe, the synthetic dollar from Ethena, circumvents the GENIUS Act's prohibition on paying interest to stablecoin holders. Unlike regulated payment stablecoins like USDC, which must hold cash/Treasury reserves, USDe is a delta-neutral synthetic asset backed by crypto collateral and hedged perpetual short positions. It generates yield from funding rates and staking rewards, not issuer-paid interest, placing it outside the Act's scope. Growing to over $14B at its peak, USDe represents a significant regulatory gap. While Germany's BaFin has restricted it, US institutional adoption is rising, as seen with Janus Henderson's partnership. The core debate is whether USDe is an innovative yield-bearing instrument or an unregulated security posing unique risks, highlighting the need for specific rules for synthetic dollars that current legislation does not address.