U.S. Treasury Secretary Scott Bessent, the top economic figure, has taken a hardline stance against industry opposition to legislation regulating virtual assets. With growing concerns that stablecoins could erode traditional bank deposits, the conflict between the U.S. government and the virtual asset industry appears to be reaching a boiling point over the issue of interest and yield payments for stablecoins.
Appearing before the U.S. Senate Banking Committee on the 5th (local time), Secretary Besent emphasized the need for swift passage of the so-called "Clarity Act," which regulates the virtual asset market structure. He strongly opposed attempts to conduct virtual asset business without a comprehensive regulatory framework, making it clear that business models that seek to evade regulation are incompatible with the U.S. financial system.
The core issue in this debate is whether stablecoins should be profitable. Some virtual asset companies, including Coinbase, have argued that they should be allowed to provide interest or similar returns to users who hold dollar-pegged stablecoins. However, Secretary Bessent raised the issue during the hearing, stating that this structure could effectively function as a bank deposit.
He raised concerns that if stablecoins offer more favorable yields than bank deposits, this could accelerate deposit outflows, particularly from regional small and medium-sized banks, and lead to instability across the financial system. This is in line with the US government and traditional financial institutions' stance to limit interest payments on stablecoins.
Democratic Senator Mark Warner, who has been discussing related legislation for months, also expressed extreme fatigue during recent discussions, suggesting that the political and industrial gap surrounding virtual asset regulation is not easily narrowed.
This hearing is seen as an opportunity to reaffirm the US government's principle that institutionalization of virtual assets is not an unconditional acceptance, but rather will be permitted only to the extent that it does not undermine the stability and deposit base of the traditional financial system. The virtual asset industry now faces a crossroads: either adjust its revenue model within the future regulatory framework, or look beyond the US market.
