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The White House has defined interest payments on stablecoins not as a threat to the traditional financial system but as a key driver to strengthen dollar dominance and lead innovation in the digital economy, urging the banking sector to adopt a more forward-looking stance.
In a report on February 13 (local time), Cointelegraph stated that the White House characterized the interest-bearing function of stablecoins as a technological advancement that financial institutions should embrace rather than regulate as a risk. White House officials analyzed that the interest provided by stablecoins would enhance capital efficiency and accelerate the digitalization of payment systems. This directly counters the conservative view within traditional finance, which has expressed concerns that the high yields offered by digital assets could trigger deposit outflows from banks.
The administration of U.S. President Donald Trump reaffirmed its commitment to removing regulatory barriers that hinder the growth of the cryptocurrency industry and fostering the United States as a global hub for blockchain innovation. The National Economic Council (NEC) assessed that activating the stablecoin market would serve as a key pillar in solidifying the international influence of the U.S. dollar and supplying abundant liquidity to markets. It particularly recommended that banks directly adopt stablecoin technology to diversify their revenue structures, including offering competitive interest rates to customers.
The cryptocurrency industry views the White House’s announcement as a significant milestone formally integrating stablecoins into the institutional framework. Major issuers such as Tether (USDT) and Circle (USDC) have indicated they are prepared to strengthen cooperation with traditional finance through transparent asset management and regulatory compliance. Experts noted that since the interest generated by stablecoins is typically backed by returns on safe assets such as U.S. Treasury bonds, they possess a structure that can be sufficiently integrated with traditional savings products. Stablecoins are now being recognized not merely as a store of value but as financial products capable of generating tangible interest income.
Major financial institutions are already accelerating efforts to build new financial services utilizing stablecoins in line with the White House’s stance. The administration emphasized that leveraging digital assets technologically to offer better interest rates, rather than competing against them, is the fastest path to securing future financial competitiveness. Regulatory authorities also plan to revise legal guidelines in a direction that encourages innovation, providing comprehensive support so that financial institutions can participate in the stablecoin ecosystem without bearing unnecessary risks.
The U.S. government’s proactive approach is expected to have a significant impact on setting global standards for cryptocurrency regulation. By institutionally accepting the interest-generating capacity of stablecoins, a legal foundation has been established for substantial institutional capital to flow into the market. As the boundary between traditional finance and digital assets gradually blurs, users are expected to enjoy financial services that are faster, cheaper, and more profitable than before. The White House stated that it will continue to pursue economic revitalization measures leveraging digital assets through close communication with the industry.
Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses incurred based on it. The content should be interpreted for informational purposes only.