Leister

They wouldn't be able to afford it.

They can't make any money.

Banks start to make a profit of some kind, some way, which is why they use your funds to invest in stuff.

The bottom line, though, the banks are worried.

They're worried.

that by having these yields on stable coins, it's going to harm their deposits.

Because if there are people that only put their money in the bank for the purposes of the interest, say savings accounts,

Why would I bother doing that for a 0.5% rate when this stable coin, which is paired to the same US dollar, is offering me 5% on the same amount of money?

There'd be no logic.

This is what's holding up the banks.

They don't want you to have yields in that amount.

They don't want you to have yields at all on the stable coins.

And the primary reason is they are worried about the gutting of deposits.

Now, instead of them competing, which is what the government should encourage,

they're saying this needs to be stripped out of there and it needs to be a level playing field at worst they could not offer more than what the bank would offer well then there's no logical reason to do it because if it's the exact same rate it's actually harder in crypto because of the kyl and all the garbage that goes along with it it completely removes the main incentive for doing it for an investor

Where's this going to go?

Nobody knows.

They think that the yield is going to be stripped out of the bill before it goes forward or be completely killed, meaning it won't be worth doing it.

Similar to what happened with the federal family education loan program when they essentially gutted the program by making it not profitable anymore.

They just, it still exists, but it's not profitable.