Yield-bearing stablecoins could kill banking — US Senator Gillibrand

Stablecoin issuers should be restricted from providing yield-bearing opportunities to protect the legacy banking system, which issues home mortgages and small business loans, US Senator Kirsten Gillibrand said at a summit in Washington, DC. Speaking at the 2025 DC Blockchain Summit on March 26, the Democratic senator from New York praised her state for having some of the most robust financial regulations in the world, and said they should be adopted by all financial services sectors. According to Gillibrand, these regulations need to be applied to stablecoin issuers, whether they are regulated at the state or federal levels, to ensure compliance with existing laws and to protect consumer safety. Gillibrand then turned her attention to protecting the banking industry:"Do you want a stablecoin issuer to be able to issue interest, probably not, because if they are issuing interest, there is no reason to put your money in a local bank source: https://cointelegraph.com/news/yield-bearing-stablecoins-kill-banking-senator-gillibrand?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound