2026-01-09 10:22:16

The US banking industry and stablecoin interest debate remains unresolved

The GENIUS Act explicitly states that stablecoin issuers are not allowed to pay interest to holders. However, in practice, a leading trading platform is offering a 3.35% yield to USDC holders. This creates an interesting contrast: regulations prohibit such practices, yet exchanges are bypassing restrictions in their operations to generate returns for users. This reflects a tug-of-war between policy-making and market practices—on one hand, regulations aim to strictly control stablecoins; on the other hand, trading platforms seek competitive advantages within compliant frameworks. The controversy over stablecoin interest payments is far from over, and future regulatory developments remain to be seen.

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LeverageAddict

· 10h ago

Circumventing the GENIUS Act with tricks? I’m familiar with this move from exchanges. Officially "not paying interest" is just an excuse; users are happy, and so are the wallets. Regulatory authorities really can't keep up. --- That 3.35% return is nothing special. I've been using it for a while. It’s just waiting for the day when the policy twists and it’s gone. As long as we can still profit, let’s profit. --- To put it simply, banks and exchanges are just playing word games. Laws are loosened and tightened at the same time, and retail investors are ultimately the ones who get harvested. --- The creators of the GENIUS Act never expected exchanges to play like this. Now it’s just a matter of who’s quick-witted and who makes money. --- It’s hilarious. Banning interest and then turning around to call it a "profit product." The name changes but the money stays the same—that’s all this routine. --- Regulation can’t keep up with market speed; it’s long been the norm in the industry. This time, it won’t be an exception.

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gas_fee_therapy

· 15h ago

This wave is indeed an art of exploiting loopholes. Exchanges really know how to play, packaging things that GENIUS bans as "profits" for you. That's just how exchanges operate. When the law bans something, they just change the name. 3.35% USDC sounds attractive, but isn't that just disguised interest payments? Banks desperately want to control stablecoins, but end up being crushed by exchanges, which is hilarious. Honestly, regulation can never keep up with the market's creativity. No matter how clearly the GENIUS Act is written, it’s useless; exchanges always find a way to outsmart every trick. This is the charm of Web3—when rules come, we just change the game. Circumventing restrictions within a compliance framework? It’s truly a 4D chess game. From now on, anything can come, because regulatory responses are always a beat behind.

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BtcDailyResearcher

· 22h ago

Regulators want to plug the loopholes, and exchanges look for gaps. We've seen this routine too many times. Circumventing the GENIUS Act, honestly, is just because the legal provisions are not written tightly enough. A 3.35% return may not seem like much, but that's the point of competition. Banks are getting anxious. Wait, can the central bank really control this? I remain skeptical. Playing tricks within the compliance framework is always the old story of crypto and traditional finance. The story of stablecoins is still ongoing; this controversy is nothing significant.

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rekt_but_resilient

· 01-09 10:49

The bill bans interest, yet exchanges still offer returns. Isn't this just playing with words? --- Wait, is 3.35% real or are they about to run away again? --- Within a compliant framework? Laughable, it just feels like loophole exploitation. --- Banks want to lock down stablecoins, and exchanges try to give users sweet deals. I love this storyline. --- The GENIUS bill is useless; the market is always one step ahead of regulation. --- It's that same "legally compliant technically" routine, but in reality, just a name change. --- 3.35% sounds good but always feels suspicious. Is anyone actually using it? --- That's why I don't trust any stablecoin protocols; they all want to harvest the retail investors. --- Regulation vs. market, this show is far from over. Waiting for the next twist.

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RatioHunter

· 01-09 10:45

Damn, the exchange's move is brilliant. When the law says they can't give interest, they just manage your investment returns themselves. Just change the name and it's all good. Clever.

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APY_Chaser

· 01-09 10:38

This exchange's operation is truly clever. When regulators say no, we just change the approach to give you 3.35%, perfectly avoiding the pitfalls.

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NewDAOdreamer

· 01-09 10:30

This exchange's operation is really top-notch. The legislation prohibits issuers from providing interest, but they transfer it themselves and then rebate it to users. Regulators really can't keep up.

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