Crypto Industry Pushes Back Against Proposed Stablecoin Rewards Ban

The global crypto industry—comprising stablecoin issuers, exchanges, DeFi platforms, and blockchain advocacy groups—has voiced strong opposition to proposals seeking to ban rewards or yield on stablecoins. Industry leaders argue that stablecoin rewards are a key innovation that supports adoption, payments efficiency, and competition with traditional banking products.

From a money supply perspective, banning stablecoin rewards could reduce demand for stablecoins, slowing their circulation and limiting dollar liquidity within crypto markets. This may push capital back toward traditional banks or offshore alternatives, weakening stablecoins’ role as a digital extension of fiat money and potentially reducing the U.S. dollar’s influence in on-chain financial activity.