stable coins

Story: Galaxy Digital’s Alex Thorn Says Banks Will Fight New Stablecoin Yield Rules

By Bruce Buterin

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Banking Sector Sees Revenue Risk. Banks aren't thrilled. The concern is straightforward: if stablecoins can legally offer…

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What Banks Might Do Next. Expect more lobbying. Banks have deep pockets and long relationships with regulators.

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Market Dynamics Shift. Stablecoins have grown fast. Users like the idea of holding dollars on a blockchain, earning yield…

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Stablecoin yield regulations just got finalized. And the banking sector probably won't like what comes next.

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Alex Thorn, who runs research at Galaxy Digital, thinks traditional banks are about to ramp up their pushback.

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The finalized provisions aim to balance innovation with consumer protection, giving clarity to how stablecoin issuers handle the money backing their tokens.

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Banks aren't thrilled. The concern is straightforward: if stablecoins can legally offer competitive yields, customers will move money out of traditional savings accounts and into…

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Thorn's prediction isn't just speculation. Lobbying groups representing major financial institutions have already been vocal about stablecoin regulation, pushing for stricter…

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The crypto sector is watching closely. Stablecoin issuers like Circle and Tether have spent years building their products, and these new rules could either legitimize their…

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Expect more lobbying. Banks have deep pockets and long relationships with regulators. They'll argue that stablecoins pose systemic risks, that they're not subject to the same…

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See also: Visa Doubles Down on Stablecoin Rails as Usage Jumps 50%

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The next few months will probably bring legal filings and policy papers. Banks might push for amendments that make stablecoin yields harder to offer, or they might demand that…

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For crypto firms, the finalized provisions are a mixed bag. On one hand, clear rules mean they can operate without constant fear of a crackdown.

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The tension between innovation and regulation is nothing new. But this time, the stakes are higher.

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More context: Stablecoin Rewards Get Green Light as Clarity Act Blocks Crypto Firms From Bank-Style Deposits

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