Stablecoins can be viewed as a new form of payments. Transfers can be instantaneous, secure, and at a very low cost. As firms that offer stablecoins must hold reserves in safe assets, such as US Treasuries, these funds are generating interest. Yet, stablecoin issuers are unable to let users earn a portion of this interest, as it would impact an influential sector of finance: legacy banks. This being said, stablecoin holders may generate “rewards” on third-party platforms by providing opportunities to generate yield.
Banks generate a significant portion of their revenue by accepting deposits and then lending the funds out. Frequently, deposits generate little interest in comparison to the interest paid by borrowers. Crypto firms see a path to providing better services for their consumers, but big banks are obviously concerned about losing a significant amount of business.
Banking 3.0 = Crypto
In an industry initiative, many crypto firms, including Coinbase, Paxos, Gemini, Kraken, and more, are promoting the idea that banks are poised for another bailout. The website, nororebailouts.org, states:
“Congress is voting on market structure legislation this fall. The bill will create essential rules and regulations for crypto, and protect your rights as consumers. One of those important rights established under the GENIUS Act is your ability to earn rewards for embracing stablecoins and using them.
The Big Banks want to take away that right and are lobbying Congress to actually take money out of your pocket. Rather than embracing new technology, they want to lock you into the same, old system with no choice, high fees, and stressful delays. Their action isn’t pro-consumer, it’s anti-competitive plain and simple.”
The consortium is asking supporters to contact their Senator as crypto infrastructure legislation works its way through Congress.
Coinbase is touting via X the possibility of a 4.5% stablecoin “reward.” This should terrify legacy banks. Coinbase declares: “big banks want to undo law to take away your crypto rewards – don’t let them.”
Translated it for you. pic.twitter.com/xpbXsKFn0O
— Coinbase 🛡️ (@coinbase) September 30, 2025
