White House Stablecoin Talks Stall:🔥🔥💥💥
High, stakes negotiations between large US banking institutions and crypto executives at the White House seem to have run up against a snag over stablecoin yields. On one side, banks are demanding very restrictive "prohibition principles" on the use of holder rewards while on the other hand, crypto leaders fear that such bans would significantly curb innovation in the digital dollar economy.
Key Issues
Banks' Demands: A sweeping prohibition on granting any financial and non, financial benefits to the holders of payment stablecoins, which would include interest and rewards.Crypto Firms' Concerns: Such measures would be a death blow to innovation, would shut the door on competition, and capital would inevitably be forced to flee to jurisdictions that have a clearer and more friendly pro, yield regulatory environment.Regulatory Deadline: Treasury Secretary Scott Bessent has gotten an ultimatum of July 2026 from the GENIUS Act for the access to the implementation rules.Implications for the Market
The US could be at risk of killing innovation and losing the crypto activity to other countries if these restrictions come to pass. According to a market view, the yield is a primary feature of stablecoins, and a ban could drastically decrease the local liquidity.
