$ U.S. stablecoin regulation — particularly how ongoing legislative and regulatory challenges are intersecting with investment concerns, market structures, and political dynamics as of early February 2026:

Barron's

Financial Times

White House Meets With Banks, Crypto Industry to Advance Bill

The stablecoin war: Wall Street vs crypto over the future of money

Today

Yesterday

🧭 1. Political & Legislative Gridlock

Key bills are stalled or fragmented.

A major crypto regulatory bill that would set a federal framework — including stablecoins — faces serious obstacles in Congress due to disputes between banks and crypto firms. Banks want limits on stablecoin yield offerings (to avoid deposits shifting out of traditional banks), while crypto exchanges see these incentives as critical for adoption. Bipartisan support is weak, and legislative timing is tight given midterm political calendars. �

Barron's

Lawmakers and regulators are split.

Wall Street and big banks are pushing to tighten regulation on stablecoins to protect the banking system, while crypto industry groups argue over innovation and access to stablecoin yields. This tension underscores the broader “stablecoin war” over the future of money in the U.S.

📉 2. Investment & Market Impact Risks

📊 A. Banking Sector Vulnerability

Stablecoins may disrupt traditional deposits.

Banks could lose up to $500 billion in deposits by 2028 to stablecoins, according to recent analysis — especially smaller regional banks — because stablecoin reserve yields (from U.S. Treasuries) can compete with bank deposit rates. �

Reuters

Systemic concerns over interest-bearing stablecoins remain.

While U.S. law (the GENIUS Act) prohibits yield-bearing stablecoins to protect bank deposits, market demand and shadow arrangements (via trading platforms) complicate enforcement and investment strategies. �

AInvest