Stablecoin Yield Debate Intensifies as FDIC Backs Bank Issuance

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The FDIC proposal to allow banks to issue stablecoins. Source: FDIC

As regulators debate yield-bearing stablecoins, the FDIC has proposed allowing banks to issue stablecoins through regulated subsidiaries. While banks argue that crypto rewards threaten deposits and lending, the Blockchain Association disputes this claim, saying evidence does not support fears of harm to community banks.

The group maintains that stablecoin rewards help consumers offset inflation and promote competition, warning that limiting crypto platforms while allowing banks similar products would distort the payments market.

[mendez]

Kinda funny regulators worried about crypto rewards hurting banks but then just let banks do the same thing