Should stablecoin issuers be allowed to pay interest to token holders?

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Should stablecoin issuers be allowed to pay interest to token holders?

I heard there’s a debate in Congress about this. What are the potential implications?

Andrew Peters Answered question April 8, 2025
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This could incentivize consumers to shift funds out of insured banks, potentially destabilizing financial institutions.

Andrew Peters Answered question April 8, 2025
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Allowing interest payments would treat stablecoins more like bank deposits, benefiting consumers.

Samuel Goldenberg Answered question April 8, 2025
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