Web3: Foreign Media Reports U.S. Stablecoin Yield Battle Resurfaces Impacting Legislation

Coin World reports:

The debate in the U.S. surrounding stablecoin yields has not ended with the implementation of the GENIUS Act. Foreign media reports that banking lobby groups have recently pushed Congress to tighten related provisions, opposing crypto platforms offering returns to stablecoin holders that approach deposit interest rates. This disagreement has affected the advancement of the Senate's Clarity Act.

Dispute Centers on Yield Diversion from Deposits

The core argument from the banking sector is that if stablecoin platforms can pay users higher returns, some funds may shift from low-interest deposits to stablecoins, thereby weakening banks' ability to attract deposits and issue loans. JPMorgan CEO Jamie Dimon has previously stated that the regulatory requirements faced by banks and stablecoin businesses are not equivalent.

The article mentions that banks hope Congress will further clarify restrictions, not only prohibiting stablecoin issuers from directly paying yields to holders but also closing off avenues for indirectly providing returns through trading platforms and distribution fee arrangements.

GENIUS Act in Effect, Clarity Act Still Under Debate

The GENIUS Act passed last year has established federal-level rules for stablecoin issuance in the U.S. Under current law, stablecoin issuers are not allowed to directly provide yields to holders, but the text does not completely rule out whether platforms aimed at users, such as exchanges, can design reward mechanisms.

As a result, the banking sector hopes to tighten the language further through the Clarity Act. The article states that although a compromise version was previously pushed by both parties, the banking sector has once again brought the issue of stablecoin yields to the forefront this month, becoming one of the reasons for renewed pressure on the legislation. If the bill does not receive the necessary support in the Senate by mid-September, the current GENIUS framework will continue to be maintained.

Low-Interest Banking Status Becomes a Point of Counterattack

The crypto industry counters that the banks' claim of "massive deposit outflows" lacks realistic basis. The article cites data including: JPMorgan's regular savings account rate is only about 0.01%, while similar products had rates above 4% twenty years ago. Against the backdrop of an inflation rate of about 3.4% in the U.S., even if some fixed deposit rates are around 3.25%, actual purchasing power may continue to decline.

• JPMorgan's regular savings rate is about 0.01%
• Some stablecoin reward programs offer returns of about 3.5% to 3.75%
• U.S. banking sector profits reached $80.5 billion in Q1 2026

In contrast, some U.S. trading platforms offer return rates above 3.5% to 3.75% for specific stablecoin projects. The crypto industry believes that banks are not under pressure due to an inability to compete, but rather because they have maintained a low-interest deposit model for a long time while overall profitability remains strong.

Resolution Expected by Mid-September

The article suggests that the next round of Senate deliberations 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 obstructed, the crypto industry may continue to seek greater product space under the existing GENIUS framework.

The outcome of the debate not only concerns whether stablecoin platforms can make "hold-to-earn" a mainstream product but also how Congress will define the boundaries between stablecoins and traditional deposits.