US Banking Sector Accused of Blocking Stablecoin Yields

The US banking sector is embroiled in a heated controversy over stablecoin yields, with major players accused of lobbying against initiatives that would allow crypto platforms to offer interest on stablecoin balances.

According to Eric Trump, the son of the US president and co-founder of World Liberty Financial, a crypto platform that issues the USD1 stablecoin and WLFI token, traditional banks are restricting access to more attractive financial products. He claimed that major banks such as JPMorgan Chase, Bank of America, and Wells Fargo are lobbying against initiatives that would allow crypto platforms to pay interest on stablecoin balances.

The dispute has significant implications for the CLARITY Act, a bill aimed at establishing a regulatory framework for the US crypto market. The debate centers around whether yield-bearing stablecoins could become an alternative to traditional deposits and reshape the financial system.