#WhiteHouseTalksStablecoinYields

✨Stablecoin yields refer to the earnings derived from the reserves behind stablecoins or various strategies.
👉Here's a clear and simple summary:
🔹1. Basic Resource: Reserve Yield (Most Common Model)
Fiat-backed stablecoins like USDT and USDC hold reserves at a 1:1 ratio (typically US Treasury bills, short-term government bonds, repurchase agreements, cash, etc.).
These reserves generate interest (typically around 3.5% – 5.5% in the 2025-2026 environment).
Currently, almost all of this interest is received by the issuer (Tether, Circle, etc.) → it does not pass to the user. This is the main point of the debate: "Should these yields be distributed to users?"
🔹2. Ways Users Currently Earn Yield
Via DeFi → Lending/providing liquidity for stablecoins on platforms like Aave, Compound, Curve → Variable yield between 2% and 12% (risky)
CeFi platforms → Some exchanges like Binance, Coinbase, Kraken, etc., offer yields between 1% and 8% on stablecoin balances (depending on the platform's strategy)
Yield-bearing/rebasing stablecoins → Products like OUSD, sDAI, USDY, USDe automatically reflect reserve interest or DeFi strategies to the user (the cleanest method)
🔹3. The Big Debate in 2026 (White House & CLARITY Act / GENIUS Act)
Banks say: "If stablecoins pay yield, bank deposits will flee, loan volume will decrease, and systemic risk will increase."
The crypto side says: “Paying yield increases stablecoin usage, strengthens the global dominance of the dollar, and benefits the user.”
✨The current GENIUS Act (2025 Act): Directly prohibits issuers from paying yield.
🤔Currently on the table:
🔸Should it remain completely banned?
🔸Should only “activity-based rewards” (staking, liquidity provision, transaction volume, etc.) be allowed?
🔸Or should yield sharing be opened to users in a controlled manner?
☕In short: Stablecoin yields technically exist, but a large portion currently remains in the issuers' coffers. The decision the US will make in 2026 will determine who gets a trillion-dollar pie. What do you think? 👉 Should yields be distributed to users, or should they remain completely banned?