Overview

• Collison argued depositors should earn market-like returns, pointing to average savings rates of about 0.40% in the U.S. and 0.25% in the EU.
• The GENIUS Act, signed in July, set a federal framework for payment stablecoins but prohibits issuer-paid yield.
• Stablecoin market capitalization has climbed from roughly $253 billion to about $303 billion since the law’s passage, according to DefiLlama.
• Bank lobbyists are pressing to curb third-party rewards that could mimic interest, a push echoed by critics cited by Coinbase CEO Brian Armstrong.
• Senator Kirsten Gillibrand has questioned whether interest-bearing stablecoins would draw deposits out of banks, highlighting policymakers’ concerns.