Why a U.S. Ban on Yield-Bearing Stablecoins Would Help 'Too Big to Fail' Banks

Yield-bearing stablecoins have had decent growth, now topping $6 billion in supply and paying out nearly $600 million to users, according to data from Stablewatch. But just as these products go mainstream, the U.S. Senate is moving forward with a stablecoin bill that could ban them outright in America.

In this episode, NYU professor and Zero Knowledge Consulting founder Austin Campbell joins Laura to break down:

• Why yield-bearing stablecoins are under fire in Washington

• Why Dems are pushing for the ban and who stands to benefit

• How this bill could give foreign issuers an edge over U.S. ones

• Whether yield-bearing stablecoins are securities under U.S. law

• And what the future holds for projects like Ethena, Sky, and others

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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• Austin Campbell, NYU Stern professor and founder and managing partner of Zero Knowledge Consulting

• Unchained: 

• How the Senate Stablecoin Bill Enriches Corporations at the Expense of Consumers

• Stablecoin Bill Passes Key Hurdle: Dems Join GOP to Deliver a Crypto Win

• Tether in the Clear? Yes, Under This New Republican-Led Senate Stablecoin Bill

• Stablecoin Bill Stalls in Senate as GOP Cries Foul Over Dem Resistance

Timestamps:

0:00 Introduction

💣 1:29 Why the new stablecoin bill takes direct aim at yield-bearing stablecoins

🗳️ 3:36 How Democrats are driving the push for a ban and what their motivations might be

🏦 6:28 Why calling stablecoins “banks” leads to major policy confusion

🌍 13:49 How the bill could hand an advantage to offshore stablecoin issuers

🎒 19:31 Whether Tether is warning about risk or just protecting its own interests

⚖️ 21:09 Are yield-bearing stablecoins actually securities under U.S. law?

💰 23:40 What real benefits yield-bearing stablecoins offer to users

🚫 29:54 Why Austin opposes the proposed 10% interest cap

📚 32:04 Why Ethena would likely be regulated under market structure rules instead

📰 35:04 Weekly News Recap

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