On Reddit, users are discussing using Coinbase’s USD Coin (USDC) as a savings account. This is because it carries an interest rate of 4 or 5%. Some suggest it as an alternative to cover emergencies or combat inflation. They warn of obvious risks, but “don’t invest in things you can’t afford to lose.”
For millions of Americans, and citizens around the world, the returns offered by decentralized finance (DeFi) platforms and crypto exchanges range from 4% to 15%. they are attractive. They are an accessible and necessary cushion to protect against inflation and face unexpected emergencies, providing access to financial opportunities rarely available through traditional banks.
However, this performance also makes it an attractive option for users. caused economic conflictin the wake of the virtual currency bill.
While this contest there is a bankthe United States holds approximately $18.61 trillion in commercial deposits (based on January 2026 Federal Reserve data).
These deposits are your main cheap funding sourcegenerate large profits by investing in government bonds and Fed reserves. This is earned through the net interest margin (the difference between the income from the loan/investment and the interest paid to the depositor).
By paying very low (or zero) returns on traditional savings accounts (often 0.5% compared to 4-15% for stablecoins), banks retain a significant difference as their primary income.
Yielding stablecoins therefore pose a direct threat to this banking model. Could cause a massive flight of deposits into income-producing assets This undermines banks’ structural advantages and reduces their ability to make home loans and local financing, which is essential for small and medium-sized enterprises.
Considering this scenario, the influential lobby The banking industry, led by the American Bankers Association (ABA), is pushing hard to introduce limits on stablecoin rewards, citing systemic risks to the economy.
The growing power of crypto companies
On the other side of the dispute, the crypto industry defends these returns and rewards of stablecoins as a fundamental pillar. To attract users and encourage growth of the ecosystem.
Coinbase CEO Brian Armstrong has made it clear that limiting these benefits would prevent the industry from competing effectively with traditional banks. Ultimately, it will slow down the development of the digital asset ecosystem.
The deep rift between the two parties was evident in a tense meeting at the White House on February 2, 2026, where representatives from the ABA, Coinbase, Circle, and other groups debated stablecoin rewards for hours, but no agreement was reached, CriptoNoticias reported.
However, the virtual currency industry Don’t just claimwhich also consolidated significant political influence in Washington.
Fairshake PAC, backed by major companies such as Coinbase, Ripple, a16z, and ARK Invest, ended 2025 with a $193 million investment aimed at boosting Bitcoin and pro-crypto candidates in the 2026 midterm elections. Its strategy focuses on key committees such as agriculture and banking. They are trying to secure a favorable regulatory framework.
Disputes seeking control of the system
all these deadlock This reflects conflicts over control of the financial system. Ray Clarity. a project called seeking to clarify regulatory roles An agreement between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In this struggle, banks are clinging to traditional models, while the crypto industry is opening the door to innovation and more direct competition. Without consensus, regulation will not happen, leaving millions of everyday users in a constant state of uncertainty when it comes to digital finance.
Despite these tensions, the legislative effort has made recent progress since Democratic senators met behind closed doors on February 4, 2026, to resume discussions on the structure of digital asset markets.
The meeting was held after “constructive” conversations took place at the White House about stablecoin rewards. source of information staff Democrats called it “the most productive we’ve ever had,” and leader Chuck Schumer emphasized the need to involve industry.
Political impasse: Ethics and management of the financial system
Beyond pressure from banks, partisan political interests are further deepening the legislative impasse.
Many Republicans are aligned with President Donald Trump’s vision of turning the United States into the “crypto capital of the world,” and have been steadfastly reluctant to include ethics provisions that would restrict private investments in digital assets by public officials.
Patrick Witt, executive director of the President’s Digital Asset Advisory Council, said in an interview on February 3, 2026, “We will not tolerate attacks against the president or his family.” This led him to call the Democratic Party’s proposed transparency law “absolutely outrageous.” He added that they are turning regulations into political weapons.
The Democratic proposal that Witt criticized was primarily promoted by U.S. Sen. Adam Schiff. These include: Prohibitions for high-level public officials such as the president and vice presidentmembers of Congress and senior administration officials issue, sponsor, endorse, or invest in digital assets, such as meme coins, non-fungible tokens (NFTs), or stablecoins, during their terms of office and for specified periods thereafter (typically 180 days before taking office and two years after taking office).
This approach also includes: Extend these restrictions to immediate family members (spouse and children). The idea is to prevent conflicts of interest and mercantilism in the industries they regulate. They are also considering broader measures against personal gains from crypto assets, including banning investments in executive roles and spouses of officials.
This back and forth between tactical progress and structural obstacles leaves several questions open. Will Washington be able to find a balance between fostering financial innovation, protecting banking stability, and ensuring ethical transparency, or will intersecting interests continue to leave in uncertainty the millions of users who see cryptocurrencies as genuine tools of the everyday economy?