Tether has shown its backing for a controversial part of the draft US cryptocurrency market structure legislation, which includes a ban on yield for stablecoins. This provision has sparked significant backlash from the cryptocurrency community, including key industry leaders. Notably, Coinbase CEO has withdrawn his support for the legislation, criticizing the banning of interest on stablecoins as an unfair move that targets fair competition in the banking sector.
Following the CEO's public disapproval, Tether's US branch met with members of the Senate to present its stance. In this meeting, Tether expressed its disagreement with Armstrong's public critique and stressed the importance of maintaining discussions privately.
Coinbase has advocated for the allowance of stablecoin yield, with its users currently enjoying rates as high as 3.5% on Circle’s USDC. The variation in opinions among industry figures has become more evident, especially with Tether launching its USAT stablecoin this week. Led by Bo Hines, the initiative aims to create a dollar-backed token that complies with the federal stablecoin structure proposed in the GENIUS Act, designed to complement Tether’s existing cornerstone product, the USDT.
In the pursuit of promoting the USAT stablecoin, Tether is actively seeking partnership opportunities with banks, suggesting a strategic approach to integrate its new offering into the current financial landscape, following industry shifts.