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Key Takeaways
- Tokenized deposits settle 24/7 on blockchain without leaving regulated banking.
- Both Wall Street giants and community banks oppose stablecoin yield payments.
- The Treasury regulatory process may resolve bank vs. non-bank sales practice disputes.
- The CLARITY Act still needs Senate floor amendments before any vote.
French Hill has one firm position on stablecoins: they should not pay interest. “In the House, we said that stablecoins would not pay interest, and that’s still my position,” he told in an interview for Fox News, shared by Bitcoin Magazine. “It’s a payment token.”
The distinction matters because a yield-bearing stablecoin starts to look like a bank deposit or money market fund, products that carry federal regulatory obligations crypto-native issuers do not currently meet. Letting non-bank issuers pay interest on stablecoin holdings would undercut banks that hold reserves, comply with lending rules...
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