Stablecoin Yields in Focus: How the US Senate is Redefining Business Models in the Crypto Industry

HackerWhoCares · 2026-01-13T08:35:52+00:00

The American legislation is approaching a turning point regarding who should distribute returns on stablecoin holdings. This debate involves traditional financial institutions advocating for regulation, while the crypto industry warns of negative impacts on competition and revenue. Coinbase is actively engaging with U.S. decision-makers to protect its business model, showing flexibility on transparency but hesitant towards stricter regulations that could threaten its operations. The outcome will significantly shape the future of the U.S. crypto industry.

HackerWhoCares

2026-01-13 08:35:52

Abstract generation in progress

American legislation is approaching a turning point. The debate centers on who should be authorized to distribute yields on stablecoin holdings – a decision with consequences for millions of users and the profitability of major platforms.

The conflict between the financial sector and the crypto industry

The traditional banking sector argues strongly that only regulated financial institutions should be allowed to offer such services. The reasoning is obvious: crypto platforms could divert savings from the traditional banking system. On the other hand, the crypto industry warns of the consequences of this regulation. It fears that strict restrictions would not only suppress competition but also threaten the revenue streams of digital asset managers.

Coinbase intensifies its political activity

Amid this controversy, Coinbase is significantly expanding its presence among US decision-makers. The company is doing everything it can to preserve its existing business model – the compensation of stablecoin holders. At the same time, Coinbase signals flexibility with limits: as long as transparency requirements are involved, the platform might make concessions. However, if the upcoming legislation on cryptoasset market structure imposes stricter restrictions beyond mere disclosure obligations, the company threatens to reconsider its current support.

What’s at stake

The stablecoin yield is much more than a marginal earning opportunity – it shapes the business model of entire platforms. As Senate debates progress, the answer to this central question will influence the future of the crypto industry in the US.

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