Unleashing onchain interest is a win-win

Crypto industry writing argues that U.S. stablecoin legislation should let holders earn interest on stablecoins, so that banks and crypto companies can both share reserve yield with consumers. The article says stablecoin issuers typically keep interest earned on short-term U.S. Treasuries, and it cites a 2024 average Fed Funds rate of 4.75% against a 0.41% average consumer savings yield. It also notes that stablecoins are already among the largest holders of U.S. Treasuries and argues that current securities laws, which exempt interest-bearing bank accounts, block issuers from paying interest.