Bitwise CIO Criticizes JPMorgan’s Near-Zero Rates Amid Stablecoin Yield Debate

Traditional banks are intensifying efforts to lobby Congress against stablecoin platforms offering competitive interest rates, fearing a potential mass migration of deposits. cryptocurrency advocates counter that banks aim to maintain their monopoly on interest-bearing accounts while delivering minimal returns to customers.

The conflict revolves around the recently enacted GENIUS Act, which established federal regulations for stablecoins but sparked controversy over yield restrictions. Bitwise's Chief Investment Officer Matt Hougan singled out JPMorgan's meager 0% to 0.01% APY on standard checking accounts, questioning the bank's opposition to stablecoin interest payments while offering virtually no yield to its own clients.

The disparity grows more pronounced when comparing accessibility. JPMorgan's higher-yield products require $100,000 minimum deposits and existing account relationships, while some stablecoin platforms provide NEAR 5% yields with lower barriers to entry.