The Financial Times revealed that the big banks in the U.S. are working behind the scenes, lobbying Congress to prevent stablecoins from paying interest to users. Their reason is the concern over massive withdrawals of deposits.

This is so real; it’s simply a blatant act of desperation. What do banks fear the most? It’s that depositors will withdraw their money. If stablecoins can offer much higher yields than bank savings accounts, who would want to keep their money in a bank? This directly threatens their foundation.

This lobbying is essentially a precise strike by traditional finance (TradFi) against decentralized finance (DeFi). They do not want to compete fairly on the same playing field; instead, they want to overturn the table and prevent you from playing. This also precisely proves how disruptive cryptocurrencies, especially stablecoins, are to the traditional financial system.