The Stablecoin War: Wall Street vs. Cryptocurrency in the Battle for the Future of Money
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According to Bijie Network: A fierce regulatory battle over stablecoin yields is intensifying in Washington, with Wall Street banks and cryptocurrency companies at odds. Banks are lobbying to close a "loophole" that allows certain exchanges and other cryptocurrency trading platforms to pay interest to customers holding stablecoins. Banks warn that this could create a highly risky parallel banking system and potentially lead to deposit outflows. Cryptocurrency companies, on the other hand, argue that this is anti-competitive behavior, claiming that banks are concerned their low-interest deposit business will be impacted. This debate is at the heart of landmark cryptocurrency legislation, with both sides set to meet this week to seek a compromise. The final outcome will determine the extent to which cryptocurrencies are integrated into mainstream finance, including whether they can access the Federal Reserve system.
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