The Banking Industry's Resistance: The Endless Debate Over Stablecoin Interest Payments
The article discusses the ongoing regulatory debate in the U.S. regarding interest payments on stablecoins. The proposed *GENIUS Act* currently prohibits stablecoin *issuers* from paying interest to holders. However, platforms like Coinbase can still offer yields (e.g., 3.35% on USDC) because they act as *distributors*, not issuers.
This loophole has sparked a significant political battle. The American Bankers Association (ABA) is leading efforts to expand the interest ban to include distributors in the upcoming *Crypto Market Structure Bill*. Banks argue that stablecoins threaten their deposit base, reduce lending capacity, and lack FDIC insurance, thereby endangering their traditional business model.
The crypto industry strongly opposes this expansion. Coinbase's Chief Policy Officer argues stablecoins haven't caused significant bank deposit outflows. Think tank Paradigm suggests that banning interest on stablecoins used for payments would be akin to a "holding tax" on consumers.
The article contrasts the U.S. situation with approaches in China and South Korea. China's digital yuan (a CBDC) pays interest to promote adoption, while South Korea's policy mirrors the current U.S. stance—banning issuer interest but not distributor interest.
The conclusion warns that if the ABA's lobbying succeeds, it would cripple the crypto industry. It argues that traditional finance should adapt to innovation, citing examples of banks and asset managers (like BNY Mellon, JPMorgan, and BlackRock) already embracing opportunities in stablecoins and tokenization.
marsbit01/09 12:44
