2026-01-14 17:37:39

Banks are moving to restrict interest-bearing stablecoins as regulators tighten oversight. JPMorgan's Chief Financial Officer has flagged yield-generating stablecoins as a serious concern, calling them "plainly dangerous and undesirable" in the current market environment.

The Senate Banking Committee has submitted over 130 amendments to the proposed crypto market structure legislation. These modifications include specific language targeting stablecoins with interest-earning mechanisms, reflecting growing institutional and regulatory skepticism about the risks they pose to financial stability.

The pushback highlights a key tension in the Web3 space: while decentralized finance enthusiasts view interest-bearing stablecoins as a core innovation for passive income, traditional finance players see them as potential systemic vulnerabilities. As lawmakers shape the regulatory framework, the fate of these products remains uncertain.

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LiquiditySurfer

· 6h ago

Oh no, Morgan is anxious again. Is the interest-bearing stablecoin really that terrifying? Honestly, it's just because they're afraid we might steal their LP yield income.

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OfflineNewbie

· 17h ago

Is it coming to ban again? Morgan really doesn't want people to make money. --- 130 amendments? Are they trying to kill defi completely? --- Why has the term "systemic risk" become a shield to prohibit innovation... --- Laughing to death, if the bank says it's dangerous, then it's dangerous, anyway they call the shots. --- Yield stablecoins are inherently risky, they probably can't back down this time. --- Traditional finance vs. DeFi, an eternal battle. Betting on a DeFi win. --- That JPM guy really dares to say it, "plainly dangerous" and just shut it down. --- I just want to know how it will end, whether everything will be banned. --- Traditional finance finds it hard to make money and starts throwing around the "risk" label, old tricks.

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ZenMiner

· 17h ago

Here we go again with this... Does JPMorgan really see itself as a central bank? Why are interest-bearing stablecoins considered dangerous? Honestly, it's just because they're afraid we will make money. Regulations change three times a day; it's really hard to say. 130 amendments? These folks are bored out of their minds... Can't we just play by ourselves?

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NFTDreamer

· 17h ago

Here they come again to ban our stuff, JPM and those guys really can't sit still. Is a stablecoin with interest really that scary? Wake up, traditional finance. 130 amendments? These guys are really panicking. Being watched to death, is this the fate of Web3... How does earning interest on stablecoins become a "systemic risk"? Laughable. The old tricks of traditional finance can't stand us making money. Passive income gone? These folks want to monopolize the entire financial system. It's tense; this time regulation might really come hard.

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YieldHunter

· 17h ago

ngl if you look at the data, jpmorg's scared because they can't extract those spreads anymore... actually yield-bearing stables were always a ticking timer, the tvl correlations don't lie

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LiquidationTherapist

· 17h ago

JPM is back again, trying to kill the future of DeFi with a "dangerous" hat? Laughable, they’re not afraid of passive income squeezing the traditional financial cake. -- 130 amendments... Regulators are really trying to kill stablecoin yield farming. Things are going to be tough now. -- Is earning interest on stablecoins really that terrifying, or are banks just afraid that users won’t need their broken products anymore? -- Traditional finance always treats innovation as a risk, a typical vested interest mentality. Wake up, everyone. -- Why is earning yield on stablecoins considered a systemic risk? In my opinion, the real risk is these people's monopoly on power. -- These 130 amendments in the Senate feel like a green light for CeFi. DeFi is about to be cut again.

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NftRegretMachine

· 17h ago

JPMorgan says it's dangerous? Then does our passive income dream also have to cool off... --- 130 amendments targeting interest-bearing stablecoins, now they're really going hard. --- What is traditional finance afraid of? It's probably that we can make money on our own. --- Here they come again, talking about innovation while wanting to cut back. How is this game played? --- Will interest-bearing stablecoins really crash? The question is, are their claims of "danger" reliable? --- So now all these holdings have to run away? Or do we keep betting on regulatory backtracking? --- If JPM's words can define danger, then what about the voices of small retail investors...

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