pull down to refresh
The GENIUS Act was designed to keep stablecoins as payment tools rather than savings products. As a result, it bans issuers from paying interest or yield to stablecoin holders. Cointelegraph
I think that under current rules, exchanges are not precluded from offering interest/rewards to people who deposit stable coins with them.
The recent CLARITY Act debate has been about a provision that would stop exchanges from doing this. I believe this was a major reason Coinbase backed out.
reply
Ah, that makes sense. And another example of how big industry players will always have their thumbs on the scale of any legislation
reply
I'm a bit confused. So Stablecoin issuers are allowed to earn interest on their treasuries, but they are not allowed to pay interest to stablecoin holders directly. Instead, exchanges attract people to deposit stablecoins in their exchanges, but instead of paying interest on the stablecoins, they pay them "rewards"?