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Crypto

US community banks oppose stablecoin interest loophole as CLARITY bill faces hurdles

U.S. community banks publicly opposed leaving room in the CLARITY bill for stablecoins to effectively pay interest, calling for changes. The industry says stablecoins could move beyond payments and act like deposit substitutes, potentially shifting deposits out of banks and weakening local lending. The ICBA estimated $1.3 trillion could leave deposits for stablecoins, with community lending falling by $850 billion. The issue could affect a Sept. 15 Senate vote.

Crypto

OpenUSD aims to reshape stablecoin revenue model, compete head-on with USDC

OpenStandard has unveiled OpenUSD, a stablecoin that shares reserve income with distribution and payment partners rather than paying returns directly to holders. The project is positioned as a shared infrastructure with more than 140 named partners, including Visa, Stripe and Coinbase. Key disclosures such as supply, redemption history and reserve details have not been released, with launch expected in late 2026. The model comes as U.S. policymakers debate restricting yield on payment stablecoin balances.

Crypto

Banks move as stablecoins grow in battle to defend digital dollars

U.S. financial firms are preparing a joint payments infrastructure that would let bank deposits be transferred directly on blockchains, as stablecoins expand. The Clearing House is pushing a system for 24-hour clearing and settlement of tokenised deposits, linking blockchain transactions to existing fiat networks such as RTP and CHIPS. The push is supported by regulatory distinctions between stablecoins and tokenised deposits, while banks focus on preventing deposit outflows.