Category: Regulatory Updates

A New Push to Ban Stablecoin Yields

Banking trade groups are actively lobbying Congress to explicitly prohibit interest or “reward” payments on stablecoins. They argue that such yields could draw deposits away from traditional banks, threatening the local lending that fuels community economies. While last year’s Genius Act set a framework for stablecoins, a debate persists over whether its

Stablecoin Regulation Comes into Focus: What Banks Need to Track

FDIC Stablecoin Proposal The FDIC issued a proposed rule for public comment establishing prudential requirements for payment stablecoin issuers that are subsidiaries of FDIC-supervised banks. The proposal mirrors the OCC’s February framework in key respects: it adopts the Genius Act’s ban on paying yield to stablecoin holders and presumes that