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Home – Political News – Only a Token Difference: Treating Cryptocurrencies Differently Makes No Sense

Only a Token Difference: Treating Cryptocurrencies Differently Makes No Sense

Cryptocurrencies like stablecoins have left many in the financial world, from major banks to customers, scratching their heads. It’s not just because few people understand how things like tokens work, but because regulations governing digital assets have further muddied the waters. And amid this confusion, consumers lose out.

There are traditional financial products or services with one set of rules. Then there’s an entirely different set of rules for functionally similar products and services on the blockchain.

Take the Genius Act. Passed in July 2025, it barred stablecoin issuers from paying interest—unlike bank deposits, which do pay interest. Exchanges promptly began paying rewards to get around this rule, and those payments looked and felt like interest payments to customers.

Now the contentious Clarity Act is working its way through Congress. One reason for the contention is the debate over whether to fully extend a prohibition on these quasi-interest payments to exchanges and affiliates, in addition to stablecoin issuers.

Some crypto supporters say restricting yield on stablecoin would kneecap a young market. Small bank advocates say the prohibition is necessary to prevent a deposit drain because they attract customers with interest rates higher than the big banks. They argue the current prohibition in the bill contains gaping loopholes that would still allow quasi-interest in practice.

The real problem is that the government has created two different regulatory frameworks for similar products. If a customer........

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