Congress intends to ban stablecoin yields, behind it is a battle for financial dominance

A recent incident has unfolded. A major exchange temporarily withdrew support for a crypto regulation bill before a key vote, causing the vote to be postponed. The reason is straightforward: Congress wants to prohibit users from earning yields on stablecoins. Sounds absurd, right? You deposit money in a bank and earn 0.1% interest, and no one complains. But if you hold USDC on a platform and earn 3.5%, it becomes a prohibited activity. Where does this difference come from? To put it plainly, banks use your deposits to buy government bonds, earning themselves 4.5%, and pocket the rest. What about stablecoin protocols? They share most of the yields with users. This comparison hits at the core of traditional finance—the passive erosion of yield distribution rights.

This incident exposes the true nature of the old system: not to protect users, but to safeguard their own interest rate setting power. Why is DeFi so attractive? Because it achieves three things—permissionless, transparent rules, and yields that go directly to your hands. While legislators are still building high walls, on-chain protocols have long offered better solutions. The yields here are not privileges to be banned, but fundamental rights jointly determined by code and market.

Let’s look at how current decentralized protocols operate. For example, some DeFi projects have lowered barriers significantly—borrowing stablecoins costs very little, and users can directly configure U.S. Treasuries on-chain, earning nearly 4% stable returns, completely avoiding bank intermediary fees. You can also lock governance tokens to earn up to 38% annualized incentives. Meanwhile, in Congress corridors, they are still fighting over the 3.5% rights, while on-chain, a more lucrative and autonomous financial system has already been built for users.

Change often comes from overlooked corners. While the old world is still embroiled in debates, the new world has already begun to operate.