Overview

• Multiliquid CEO Will Beeson argues stablecoins need the ability to offer yield to attract users in a competitive market.
• The GENIUS Act bans issuers from paying interest but does not prohibit exchanges from offering rewards, and Coinbase pays interest on USDC balances on its platform.
• An August 12 letter from the Bank Policy Institute and other trade groups warns the rewards gap could drain up to $6.6 trillion from bank deposits and urges Congress to close it.
• Crypto industry groups countered on August 20, disputing the $6.6 trillion estimate and urging regulators not to restrict third‑party incentives they say support innovation and competition.
• Stablecoin holdings lack FDIC insurance even as agencies roll out reserve, audit, and AML rules, sharpening the consumer‑protection stakes in the policy fight.