The big banks worrying about yield-bearing stablecoins need to grow up | Opinion
That fear is why they fought tooth and nail to keep yield-bearing stablecoins out of the GENIUS Act, and why they’re now pushing regulators to stop platforms like Coinbase from offering rewards to stablecoin holders.
Wall Street claims that yield-bearing stablecoins will trigger deposit flight, which would destabilize lending and put the entire financial system at risk. It’s the same tired line we’ve heard countless times: when money market funds were introduced in the 1970s, when online brokerage accounts became mainstream in the 1990s, and when fintech apps emerged over the past decade. Each time, the banks were wrong.
