China Pays Yield. America Bans It.

Remember when your bank paid 0.1% on checking? Then Coinbase started paying 4.5% on your USDC. Not interest: “rewards.”

That loophole might be dying this Thursday.

On January 12, Senate staff told crypto leaders they would “need prayers“ for the January 15 markup on the Clarity Act1, signalling that banks had successfully lobbied to close the stablecoin “loophole” that allows platforms like Coinbase to share Treasury returns with users. The $1.3B Coinbase revenue stream from stablecoin yield? Gone.

China started paying interest on the digital yuan on January 1st. America is banning it. What’s going on?

This vote is not just about your 4.5%. It’s about whether America gets regulatory clarity at all.

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What happened:

The Senate Banking Committee will vote on January 15 on the death of stablecoin yield.