White House "Yield vs. Reward" Showdown: The Stablecoin Compromise
The White House Crypto Policy Council has proposed a landmark distinction between "idle yield" and "transactional rewards," potentially breaking a year-long legislative deadlock. While direct interest on stablecoin balances remains banned under the GENIUS Act, this new compromise allows for loyalty-based rewards, clearing a path for Ripple’s
$RLUSD USD and others to offer institutional incentives.
Trend Analysis: The Battle for Liquidity
In the last 24 hours, the third closed-door meeting at the White House shifted the focus of US crypto policy from "if" to "how." Traditional banks, fearing a $500 billion deposit flight by 2028, have fought for a total ban on stablecoin returns. However, the President’s Council of Advisors for Digital Assets, led by Patrick Witt, has introduced a middle ground: Activity-based rewards.
This "SocialFi" approach means users cannot earn "passive" interest (like a savings account), but they can receive financial considerations for using the stablecoin in payments or ecosystem participation. For Ripple, this is a massive green light for RLUSD, which is being positioned as the compliant bridge for cross-border liquidity. Globally, this sets a precedent that will likely be mirrored in the EU’s MiCA reviews and Abu Dhabi’s burgeoning stablecoin frameworks.
Key Insight: The compromise effectively turns stablecoins into "programmable loyalty points" rather than bank account competitors, pacifying the banking lobby while maintaining the utility that crypto firms like Coinbase and Ripple demand.
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