White House Slams Stablecoin Yields: ‘Achieves Nothing!’ 🤯

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The gloves are off, and the pugilists are armed with legal jargon and a suspiciously large number of coffee cups 🤼‍♂️🧠. The crypto and banking lobby have turned the debate over stablecoin yields into a veritable circus, complete with elephants in the room and a ringmaster in the White House.

For the banking industry, the markup of the crypto bill (CLARITY Act) is a golden opportunity to ban stablecoin yields, thereby protecting their turf like a grumpy terrier guarding a bone 🐾. Otherwise, they’d have to seek an amendment of the stablecoin law, the GENIUS Act-though one wonders if “GENIUS” stands for “Getting Everyone Nowhere, Unquestionably.”

To counter banks, the crypto industry has unleashed a flurry of lobbying so fierce, it could make a dachshund howl 🐾. The sector also has the support of the White House, which, in a statement, called the stablecoin yield critics “preservers of the status quo” and “achievers of nothing” if the bill fails. A damning indictment, indeed 🧠.

Crypto leaders defend stablecoin yield

Over 125 crypto firms and organizations have written to Congress, urging lawmakers not to amend the GENIUS Act to banks’ interests. It’s like trying to stop a tidal wave with a net made of confetti 🌊✨.

Echoing the same, Joseph Lubin, Ethereum co-founder, said that keeping the stablecoin yield would reinforce U.S. competitiveness. He added, “We shouldn’t undercut this world-changing innovation by restricting consumer freedom to put their money to work. The GENIUS Act was careful not to do that.” A sentiment so profound, it could be etched on a marble tablet 🗿.

Banks aren’t backing down

The banks, on the other hand, have continued to express strong criticism of stablecoin rewards, viewing them as a risk to deposits and a threat to their financial lifeline. It’s like telling a vampire they’re not allowed to sip on blood-nope, not happening 🧛‍♂️.

Additionally, they argued that crypto shocks, such as the October 10 crash, could affect the broader financial system. A valid concern, akin to worrying a toddler might spill juice on your rug 🍹.

On his part, Brian Armstrong, Coinbase CEO, also maintained the ‘national security’ and global competitiveness argument. He downplayed banking sector fears on stablecoin yield and cautioned, “I worry we are missing the forest through the trees in the U.S. rewards on stablecoins will not change lending one bit – but it does have a big impact on whether U.S. stablecoins are competitive.” A masterclass in diplomatic speak 🤝.

For Mike Novogratz, CEO of Galaxy, reversing the GENIUS Act would be “foolish,” and he urged banks to “toughen up and compete.” A call to arms as dramatic as a Shakespearean soliloquy 🎭.

The recent discussion on yield underscores that it will likely be one of the contentious issues during the markup scheduled for the 15th of January. Along with DeFi regulation and ethics provisions targeting President Donald Trump, these issues could be deal-breakers, according to some policy watchers. A recipe for chaos, served with a side of espresso 🫖.

Final Thoughts 

  • Stablecoin yield debate puts crypto market structure bill, CLARITY Act, at risk. 🚨
  • For crypto supporters, the yield would make the U.S. competitive, but for banks, it would heighten financial risk and dent deposits. 🏦💸

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2026-01-08 16:17