#WhiteHouseTalksStablecoinYields

#WhiteHouseTalksStablecoinYields
What Are Stablecoins?
Stablecoins are digital coins that stay equal to 1 US dollar.
They do not move up and down like Bitcoin.
Popular examples:
• USD Coin (USDC) – made by Circle, works with Coinbase
• Tether (USDT) – made by Tether
People use them because: • Fast and cheap global payments
• Easy crypto trading
• Can earn rewards in some apps
Right now (Feb 2026), total stablecoins in the world are about $310 billion — very close to all-time highs.
What Is Stablecoin “Yield”?
Yield means extra money, like bank interest.
Example:
If you keep 1,000 USDC on an exchange, you might earn 4–5% per year.
Companies earn interest from safe assets (like US government bonds) and share some with users.
But not every app gives rewards — it depends where you hold them.
Why Are Banks Angry?
Banks usually pay very low interest (0.5%–1%).
Stablecoins can give higher rewards (4–8%).
So people move money from banks to crypto apps.
Banks say: “Stablecoins act like banks but don’t follow full bank rules.”
Crypto companies say: “Rewards help users earn more and help America grow in crypto.”
The Laws
GENIUS Act (2025)
• Stablecoins must be backed 100% by real dollars.
• The stablecoin company cannot directly pay rewards.
• But exchanges can still give rewards (this is the debate).
CLARITY Act (Not passed yet)
• Will create full crypto rules in the US.
• Will decide what happens to stablecoin rewards.
What’s Happening Now? (Feb 2026)
The White House is helping banks and crypto companies reach an agreement.
Big meeting happened on February 19, 2026.
Latest update: • Progress made
• No final deal yet
• White House supports limited rewards
New idea: ✔ Rewards allowed if users actively use stablecoins (payments, trading, lending).
✖ No rewards just for holding idle money like a savings account.
They want to finish the law by March and possibly pass it by April 2026.
Why This Matters
If rewards stay (even limited): • You can earn extra money on digital dollars
• Crypto grows faster in America
• More investment and innovation
If rewards are banned: • Stablecoins become less attractive
• Crypto growth may slow in the US
Simple Summary
• Stablecoins = digital $1 coins
• Yield = extra % rewards
• Banks don’t like it
• Crypto supports it
• White House trying to find middle solution
• Decision coming soon
This debate will decide if your digital dollars can earn safe rewards in the future.