Foreign media: US stablecoin yield dispute once again impacts legislation

The debate over stablecoin yields in the United States has not ended with the passage of the GENIUS Act. According to foreign media reports, banking lobbying groups have recently pushed Congress to tighten relevant language again, opposing crypto platforms offering returns to stablecoin holders similar to deposit interest. This dispute has already affected the progress of the Senate's Clarity Act.

The controversy centers around yield diverting deposits

The core view of the banking industry is that if stablecoin platforms can pay users higher returns, some funds may move from low-interest deposits to stablecoins, thereby weakening banks' ability to attract deposits and issue loans. JPMorgan CEO Jamie Dimon has also publicly stated that the regulatory requirements faced by banks and stablecoin businesses are not on an equal footing.

The article notes that the banking sector wants Congress to further clarify restrictions, not only prohibiting stablecoin issuers from directly paying yields to holders, but also closing loopholes that would allow returns to be provided indirectly through trading platforms, distribution fee arrangements, and other mechanisms.

GENIUS in effect, Clarity still contested

The GENIUS Act, passed last year, has established federal rules for U.S. stablecoin issuance. Under current law, stablecoin issuers are not permitted to provide yields directly to holders, but when it comes to whether user-facing platforms like exchanges can set up reward mechanisms, the language is not completely definitive.

As a result, the banking sector hopes to use the Clarity Act to further tighten the wording. The article states that although both parties had previously promoted a compromise version, the banking industry has once again pushed stablecoin yield issues to the forefront this month, making it one of the reasons why the bill is facing renewed pressure. If the Act fails to gain necessary Senate support by mid-September, the current GENIUS framework will remain.

Low bank interest rates become a counterargument

The crypto industry argues that banks’ claims of “massive deposit outflows” lack real-world evidence. Cited data in the article include: JPMorgan’s regular savings account interest rate is only about 0.01%, whereas similar products had rates higher than 4% twenty years ago. With U.S. inflation at around 3.4%, even if some fixed-term deposit rates are at 3.25%, actual purchasing power may still continue to fall.

• JPMorgan regular savings rate about 0.01%
• Some stablecoin reward projects offer returns around 3.5% to 3.75%
• U.S. banking sector profits reached 80.5 billion dollars in Q1 2026

By comparison, some U.S. trading platforms offer return rates of 3.5% to 3.75% or higher for certain stablecoin projects. Based on this, the crypto industry believes that banks are not under pressure because they cannot compete, but rather because they have long maintained a low-interest deposit model, while their overall profitability remains strong.

The outcome may become clear by mid-September

The article argues that the next round of Senate review will determine the short-term direction of this debate. On one hand, the banking sector hopes to restrict stablecoin rewards through stricter legislative language; on the other hand, if the Clarity Act is blocked, the crypto industry may continue to seek a broader product scope under the existing GENIUS framework.

The outcome of this debate will not only affect whether stablecoin platforms can make “holding yields” a mainstream product, but also determine how the United States defines the boundary between stablecoins and traditional deposits.