Columbia Enterprise College adjunct professor Omid Malekan challenged what he known as 5 widespread banking-industry misunderstandings about stablecoin yields as Congress strikes a market construction invoice towards markup this month.
He pushed again on claims that stablecoins will mechanically drain financial institution deposits or collapse lending, and argued the actual struggle is over who receives curiosity on the reserves that again these tokens.
“I’m disenchanted that market construction laws appears to be held up by the stablecoin yield situation,” he mentioned. “Many of the issues bouncing round Washington are primarily based on unsubstantiated myths,” Malekan added.
Misconceptions About Stablecoin Yields
Based mostly on experiences, Malekan listed 5 particular factors the place {industry} speaking factors have wandered from the information. He mentioned stablecoins are absolutely reserved in lots of instances, and that issuers usually park reserves in Treasury payments and financial institution accounts — exercise that may feed, not sap, banking enterprise.
I’m disenchanted that market construction laws appears to be held up by the stablecoin yield situation. Many of the issues bouncing round Washington are primarily based on unsubstantiated myths.
So I’ve written a brand new article tackling the 5 greatest. They embrace:
1) Whether or not stablecoins… https://t.co/U2fQcPNZyV
— Omid Malekan (@malekanoms) January 12, 2026
He additionally famous that a lot US credit score is delivered outdoors neighborhood banks, by way of cash market funds and personal lenders, so the hyperlink between stablecoins and financial institution lending shouldn’t be as direct as some {industry} statements suggest.
Banks Press Lawmakers Over Yield Guidelines
Lawmakers are racing to settle these questions earlier than a committee markup. The Senate Banking Committee is scheduled to mark up the market construction textual content on January 15, 2026, and sources say negotiators stay cut up on whether or not to limit third-party yield preparations tied to stablecoins.
Neighborhood banks and commerce teams have urged senators to shut what they name “yield loopholes,” saying unregulated rewards might lure deposits away and lift liquidity dangers.
BTCUSD buying and selling at $91,860 on the 24-hour chart: TradingView
Who Captures The Curiosity Issues
Malekan centered consideration on the distribution of curiosity from reserve belongings. Based on his feedback, the coverage selection shouldn’t be about banning stablecoins however about deciding whether or not banks or crypto issuers seize returns on reserves.
If issuers are allowed to share curiosity or rewards with clients, that would stress financial institution income — some extent banks are making loudly in hearings and letters to lawmakers.
File Drafting And Final-Minute Haggling
Experiences have disclosed that committee employees had been racing to file a bipartisan market construction textual content and reconcile yield language forward of a deadline this week. Negotiations continued into late periods as senators weighed compromises that would permit some types of rewards whereas guarding in opposition to run dangers and financial institution disintermediation.
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