TD Cowen: Banks May Struggle to Win Stablecoin Yield Battle, but Prolonged Stalemate Could Jeopardize US Crypto Legislation

Odaily News Investment bank TD Cowen stated that in the policy dispute surrounding stablecoin yields, the banking industry may ultimately be at a political disadvantage, but the ongoing industry tug-of-war could slow down or even threaten the progress of the US crypto market structure bill.

Jaret Seiberg, Managing Director of TD Cowen's Washington Research Group, pointed out in a report that the banking industry's opposition to stablecoins offering yields to users is essentially opposing consumers receiving additional returns, making it difficult to maintain a long-term political advantage. However, if this controversy continues to escalate, it could affect the passage process of the CLARITY Act (Clarity for Digital Tokens Act).

This analysis was released as the US Office of the Comptroller of the Currency (OCC) is proposing specific rule recommendations to implement the GENIUS Act (Stablecoin Bill). According to the proposal, stablecoin issuers are explicitly prohibited from directly paying interest or yields to token holders. Furthermore, if an issuer coordinates with affiliated entities to have a third-party platform pay stablecoin yields to users, it may also be presumed to be a violation.

The OCC stated that it will conduct case-by-case assessments for different situations and has opened a 60-day public comment period for the related rules.