USDT Yield Competition Sparks Banking Sector Concerns Over Deposit Flight

Citigroup executive Ronit Ghose has issued a stark warning that stablecoin yields could trigger a 1980s-style bank deposit flight, drawing parallels to the savings-and-loan crisis that saw $231 billion migrate from regulated banks to money market funds. This caution comes as US banking groups intensify lobbying efforts for Congress to close what they perceive as a regulatory loophole in the GENIUS Act that allows cryptocurrency exchanges to offer yields on third-party stablecoins including Tether (USDT) and Circle's stablecoin offerings. The banking industry's concern centers on the competitive pressure created by crypto platforms offering attractive yields on stablecoin deposits, potentially diverting significant capital away from traditional banking institutions. This development represents a critical inflection point in the relationship between traditional finance and digital assets, with stablecoins emerging as legitimate competitors for consumer deposits. The GENIUS Act's current framework appears to provide crypto exchanges with regulatory flexibility that traditional banks argue creates an unlevel playing field. As of September 2025, the situation highlights the evolving landscape of digital finance where yield-bearing stablecoin products could fundamentally reshape how consumers allocate their liquid assets. The banking sector's response demonstrates their recognition of cryptocurrency's growing influence in mainstream finance and the potential disruption to traditional deposit-based banking models. This regulatory battle could significantly influence the future development and adoption of stablecoins like USDT in the broader financial ecosystem.

Citi Executive Warns Stablecoin Yields Could Trigger 1980s-Style Bank Deposit Flight

Citigroup's Ronit Ghose sounded alarms over stablecoin interest payments potentially replicating the 1980s savings-and-loan crisis, where $231 billion migrated from regulated banks to money market funds. The comparison comes as US banking groups lobby Congress to close a perceived loophole in the GENIUS Act that lets crypto exchanges offer yields on third-party stablecoins like Tether and Circle.

Banking trade associations argue the current framework creates an uneven playing field. While the GENIUS Act prohibits direct interest payments by issuers, exchanges can still offer rewards through affiliate programs—a regulatory gap that could accelerate deposit outflows from traditional banks facing rate restrictions.

Tether Maintains Dominance Amid Regulatory Scrutiny as Rivals Gain Traction

Tether's USDT continues to lead the stablecoin market with a 60% share, despite ongoing regulatory challenges. The GENIUS Act's new disclosure requirements highlight Tether's quarterly reporting as a potential vulnerability, creating opportunities for competitors like USD Coin (USDC), which boasts a $68 billion market cap.

The stablecoin sector has nearly tripled in size since October 2023, reaching $288 billion in August. This growth comes as traditional financial institutions show increasing interest in dollar-pegged cryptocurrencies, particularly following Tether's 2021 $41 million CFTC settlement over reserve transparency issues.

Solana and Cardano Investors Pivot to Ethereum L2 Memecoin Amid 2000% Reward Hype

Investors in Solana (SOL) and Cardano (ADA) are shifting capital toward Layer Brett (LBRETT), a new ethereum Layer 2 memecoin project offering presale staking rewards up to 55,000% APY. Priced at $0.005 per token, analysts speculate 100x potential during the bull run.

While SOL and ADA focus on incremental upgrades, LBRETT merges viral meme appeal with L2 scalability—boasting near-instant transactions and negligible fees. The presale accepts ETH, USDT, and BNB via MetaMask and Trust Wallet, intensifying FOMO across DeFi and meme communities.

Ethereum’s LAYER 2 infrastructure gives LBRETT a technical edge, processing transactions off-chain with Ethereum’s security. Solana’s congestion issues and Cardano’s slower governance updates pale against LBRETT’s frictionless design, though long-term viability remains untested.

South Korea's Stablecoin Regulation Debate Intensifies as Industry Calls for Faster Action

South Korea's cryptocurrency industry is pushing for accelerated regulatory clarity on stablecoins, as highlighted during a recent seminar at the National Assembly in Seoul. The event underscored growing concerns that domestic projects are being outpaced by foreign-issued tokens like Tether (USDT), which are already circulating in everyday transactions.

Lawmaker Min Byung-duk emphasized the urgency, stating, "Strong winds of stablecoins are blowing now." His draft legislation, developed through public reviews, aims to address the legal vacuum. Meanwhile, the Financial Services Commission (FSC) is finalizing its own framework for won-backed stablecoins and oversight of foreign tokens, with a focus on anti-money laundering safeguards and practical payment use cases.

Stablecoin Adoption Surges to $35B as Fiat Currencies Collapse in Emerging Markets

Hyperinflation and currency devaluation in Egypt, Nigeria, and Argentina have triggered a $35 billion migration to dollar-pegged stablecoins. Argentina's digital economy now processes $11 billion annually in USDT transactions—nearly 3% of its M1 money supply—despite regulatory crackdowns. Lemon Cash and similar apps have become de facto banking platforms for salaries and rent payments.

Nigeria's underground crypto economy flourishes with $24 billion in annual stablecoin flows, circumventing government bans. The USD-denominated tokens serve as both a hedge against 140% inflation in Argentina and a functional alternative to collapsing banking systems. Coinpedia data reveals stablecoin transaction volumes now correlate directly with local currency instability.

Open Miner Unveils Cloud Mining Model for XRP, BTC, ETH, and USDT Investors

Open Miner is capitalizing on the growing interest in cryptocurrency income generation with its intelligent cloud mining platform. The service, now offering a $500 registration bonus and daily $1 rewards for new users, targets investors seeking efficient and secure exposure to digital assets.

The platform distinguishes itself through FCA certification, principal and interest protection, and transparent contract terms. Its cloud mining model eliminates technical barriers, allowing users to manage investments without specialized knowledge.

Market observers note the timing aligns with increased institutional interest in crypto yield products, particularly for major assets like Bitcoin and Ethereum. The promotional incentives appear designed to attract retail participants during a period of renewed market activity.