USDT Yield Battle: Banks vs Crypto in $6.6 Trillion Deposit War

US banks are escalating their campaign to amend the GENIUS Act to ban stablecoin issuers from offering interest yields, fearing massive deposit flight from traditional banking systems. The current legislation, passed in July 2025, allows cryptocurrency exchanges to provide competitive yields on stablecoins like USDT and USDC—a feature traditional banks cannot match under existing regulations. Banking lobbies are sounding alarms that this regulatory disparity could trigger a potential $6.6 trillion shift of deposits from conventional banks to crypto platforms, potentially destabilizing traditional credit markets and reshaping the financial landscape. This development represents a critical inflection point for stablecoin adoption and traditional banking stability, with USDT positioned at the center of this regulatory battle that could determine the future trajectory of digital asset integration within mainstream finance.

US Banks Push for Stablecoin Yield Ban Amid Fears of Deposit Flight

US banks are intensifying efforts to amend the GENIUS Act, seeking to prohibit stablecoin issuers from offering interest to customers. The legislation, passed in July, currently allows crypto exchanges to provide yields on stablecoins like USDT and USDC—a competitive edge traditional banks lack. Banking lobbies warn this could trigger a $6.6 trillion deposit exodus, destabilizing credit markets.

The American Bankers Association frames the issue as a systemic risk, arguing that yield-bearing stablecoins create an uneven playing field. With banks offering near-zero interest on deposits, the threat of capital migration to crypto platforms grows. Treasury Department reports cited by the industry suggest such outflows could raise borrowing costs and constrain lending nationwide.

Behind the scenes, financial institutions are mobilizing for a regulatory showdown. Lobbyists aim to extend the interest payment ban to all crypto firms, positioning stablecoins as both an economic threat and a challenger to traditional banking models. The battle lines reflect Wall Street's growing recognition of digital assets as legitimate competition for consumer assets.

TRON Integrates with deBridge, Enabling Cross-Chain Transfers Across 25 Blockchains

TRON has gone live on deBridge, marking a significant expansion of its interoperability capabilities. The integration connects TRON's high-throughput network—boasting over 320 million accounts and 11 billion transactions—to deBridge's multi-chain ecosystem. This development is particularly consequential for stablecoin liquidity, as TRON hosts more than half of Tether's USDT supply.

The partnership addresses a persistent challenge in decentralized finance: the frictionless movement of stablecoins across chains. deBridge's infrastructure now enables near-instant, MEV-protected transfers without wrapping assets—a technical leap that could reshape cross-chain trading and remittances.

Emerging markets stand to benefit disproportionately from this integration. TRON's mobile-first design and low fees have already made it a preferred platform in these regions; coupling this with seamless cross-chain access could accelerate adoption curves.

GENIUS Act Sparks Debate as Stablecoins Challenge Traditional Banks

The GENIUS Act, which formalizes stablecoin regulation in the U.S., has ignited a fierce debate between the crypto community and traditional banks. The legislation, aimed at governing the $288 billion stablecoin market, has drawn criticism from banking lobbies like the American Bankers Association and the Bank Policy Institute. These groups argue the law contains a loophole allowing third-party exchanges to offer yield on stablecoins—while banks are barred from paying interest on their own stablecoin products.

Banking institutions fear a repeat of the late 1970s deposit flight, when money market funds lured customers away with higher yields. Ronit Ghose of Citi warns that stablecoins could trigger a similar exodus, as crypto exchanges capitalize on their ability to offer returns where banks cannot. The regulatory shift underscores the growing tension between legacy finance and digital assets, with billions in deposits potentially at stake.

Venezuelans Turn to USDT Amid Hyperinflation, Crypto Adoption Soars

Venezuela ranks 13th globally in the 2024 Chainalysis Crypto Adoption Index, with a 110% year-over-year surge. Stablecoins like USDT have become lifelines as the bolívar collapses—losing 70% of its value from October to June, while annual inflation hit 229% in May.

Digital wallets dominate payments, with Binance and Airtm leading adoption. Local businesses now experiment with crypto payrolls, and universities integrate blockchain courses. "There are lots of places accepting it now," says Victor Sousa, a customer who paid for phone accessories in USDT. "The plan is to one day have my savings in crypto."

Economist Aarón Olmos attributes the trend to necessity: eroded wages, capital controls, and banking exclusion. President Maduro’s crackdown on black-market rate reporting has failed to stabilize the bolívar, further fueling the crypto exodus.

Stablecoin Liquidity Growth Cools as Market Cap Expansion Slows

Stablecoin reserves on exchanges have reached record levels, but the once-torrid pace of market capitalization growth is showing signs of moderation. Weekly inflows now hover around $1.1 billion—a stark decline from the $4–8 billion weekly expansions seen during late 2024's bull run. This liquidity slowdown removes a key tailwind that previously propelled Bitcoin's rally.

Tether's USDT, the market leader, mirrors this trend. Its 60-day growth rate has halved from cycle peaks above $21 billion to roughly $10 billion. While still positive, the deceleration signals weakening capital inflows across crypto markets. The aggregate stablecoin market cap growth and USDT issuance now tread slightly below their moving averages.

For traders, this inflection point suggests diminishing fuel for upward price momentum. The market isn't contracting, but the era of breakneck liquidity expansion appears to be transitioning into a more measured phase.

CryptoGames Enhances Platform with Affiliate Program Updates and Expanded Reward System

CryptoGames, a licensed cryptocurrency-based online casino operational since 2020, has rolled out significant platform upgrades. The updates include revisions to its affiliate program and an expansion of its player reward mechanisms. The platform emphasizes provably fair games, multi-cryptocurrency support, and transparent reward structures.

The casino features 10 in-house games such as Dice, Roulette, and Blackjack, all verified for fairness. Notably, these games boast some of the lowest house edges in the industry—1.0% on Dice and Keno, and 1.25% on Blackjack—solidifying its competitive edge in the blockchain casino market.

CryptoGames supports 15 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), Binance Coin (BNB), Ripple (XRP), and Tether (USDT). Integrations with ChangeNow and Swapped enable deposits in over 50 altcoins, with instant conversion to supported currencies or direct crypto purchases via credit cards, Google Pay, and Apple Pay.

The revamped affiliate program offers a 15% commission from the house edge on referred players' wagers, irrespective of game outcomes. High-volume affiliates can negotiate higher rates through the CryptoGames marketing team, catering to larger audiences.