USDT’s Yield Potential at Center of Banking Lobby’s Fierce Opposition as Regulatory Clash Intensifies

As the United States moves closer to finalizing comprehensive cryptocurrency regulations, a critical battle over the future of stablecoins—spearheaded by the banking lobby—has erupted in Washington. The core contention revolves around whether stablecoins like Tether (USDT) should be permitted to offer yield-bearing features to holders. The American Bankers Association (ABA), representing traditional financial institutions, has launched a vigorous campaign, framing such yield-generating stablecoin products as a significant systemic risk to the broader financial ecosystem. Their primary argument posits that if widely adopted, these products could trigger a massive diversion of consumer and institutional deposits away from traditional banks and into the digital asset space. This exodus, they warn Congress, would directly reduce the capital pools that banks rely on to issue loans to businesses and individuals, potentially constricting credit availability and destabilizing the traditional lending model that underpins the economy. This regulatory clash arrives at a pivotal juncture, with lawmakers actively crafting the final rules that will govern the stablecoin market. The banking industry's push for restrictive policies explicitly targeting yield mechanisms represents a strategic effort to limit the competitive threat posed by decentralized finance (DeFi) protocols and custodial services that allow holders to earn returns on their stablecoin holdings. For Tether (USDT), the world's largest stablecoin by market capitalization, the outcome of this debate carries profound implications. A regulatory framework that prohibits or severely restricts yield-bearing features could cement its role primarily as a settlement and transfer vehicle, potentially capping its utility and adoption in more complex financial applications. Conversely, a more permissive approach could unlock new avenues for growth, allowing USDT to compete more directly with traditional savings and money market products. This confrontation underscores the fundamental tension between innovation in the digital asset sector and the entrenched interests of incumbent financial institutions, with the final rules set to define the competitive landscape for years to come.

Banking Lobby Escalates Stablecoin Yield Battle as Crypto Rules Near Finalization

Washington's stablecoin debate reached a pivotal moment as banking interests pushed for restrictive yield policies. The American Bankers Association framed yield-bearing stablecoins as a systemic risk, warning Congress such products could divert deposits from traditional lenders.

Financial institutions argued unregulated stablecoin rewards might reduce available capital for loans. This clash coincides with broader legislative efforts to establish digital asset frameworks—a process now complicated by open banking disputes.

Crypto firms countered that yield restrictions WOULD stifle innovation. The standoff reflects deeper tensions between decentralized finance and traditional banking models as stablecoins gain traction.

Iran Turns to USDT Amid Currency Crisis as DeepSnitch AI Launches Bonus Campaign

Iran's Central Bank has reportedly accumulated over $507 million in Tether's USDT to stabilize its collapsing currency, the rial. Blockchain analytics firm Elliptic reveals these purchases coincided with an eight-month period where the rial lost half its value—demonstrating how stablecoins now serve as emergency reserves for nations locked out of traditional finance.

Meanwhile, DeepSnitch AI's bonus campaign offers up to 300% incentives for early adopters of its Web3 Bloomberg Terminal. The platform, which has already secured $1.3 million in presale funding, aims to replace trading guesswork with real-time blockchain intelligence.

The dual developments underscore crypto's irreversible penetration into global finance—from state-level economic triage to institutional-grade trading tools. As SKR and AXS tokens consolidate, savvy investors are positioning in DSNT, betting on AI-powered market analytics becoming the next frontier in digital asset trading.

Ripio’s Strategic Pivot Amid Crypto Lateralization

Argentine exchange Ripio prepares for a 'lateralized' 2026, forecasting muted crypto price action but accelerating institutional adoption of stablecoins and tokenized assets. DeepSnitch AI ($DSNT) emerges as a presale standout, while BlockDAG’s presale nears its finale.