📅 January 21 |
While political and financial leaders met in Davos, Donald Trump made it clear that he wants to close the most ambitious chapter of crypto regulation in the United States as soon as possible. But behind the presidential optimism lies a deepening rift. Banks, exchanges, legislators, and the White House itself are clashing over a point that seems technical but actually defines the future of digital money: who can pay yield on stablecoins and under what rules.
📖During his speech at the World Economic Forum, Trump reiterated that the United States is now the “crypto capital of the world” and asserted that he expects to sign the Crypto Market Structure Act “very soon.” The comment comes after a chaotic week in Washington, marked by the withdrawal of support for Coinbase, the postponement of key Senate hearings, and last-minute negotiations that reveal deep internal divisions.
The main focus of the conflict is the treatment of rewards or yields on stablecoins. Although the GENIUS Act, passed months ago, prohibits issuers from paying interest directly to holders, it leaves the door open for intermediary platforms—such as exchanges—to offer incentives. For banks, this regulatory vacuum represents an existential threat: they warn that billions in deposits could migrate out of the traditional banking system, particularly affecting community banks.
From the crypto side, the narrative is the opposite. Companies in the sector are accusing banks of trying to stifle competition after losing their exclusive control over digital payments. They argue that the debate already took place during the passage of GENIUS and that reopening it now puts the entire legislative package at risk.
Tensions reached such a point that Patrick Witt, director of the Presidential Council of Advisors on Digital Assets, warned that the law must be passed before it loses political momentum, even while acknowledging that it will not be perfect. His statements reflect growing anxiety within the White House about the possibility of the project being derailed.
From the industry, Brad Garlinghouse, CEO of Ripple, called for moving forward without further delay, arguing that a clear framework is preferable to regulatory paralysis. Meanwhile, the White House's AI and crypto czar, David Sacks, publicly acknowledged that the yield issue is the most sensitive point, but insisted on the need for a compromise to get the bill to the president's desk.
Topic Opinion:
This law is no longer just about regulating the crypto market, but about deciding who controls the programmable money of the future. If Congress gives in too much to banking pressure, it risks stifling the innovation it claims to want to foster. If, on the other hand, it leaves too many loopholes, it could trigger a disruption that the traditional system is unprepared to absorb. The balance is fragile, and the political clock is ticking faster than ever.
💬 Should yields on stablecoins be allowed even if they compete with banks?
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