Don't think you can earn money while lying down anymore! The US has struck hard at stablecoins, and the crypto world is kneeling completely this time.
The US government has taken action! It directly suffocates the stablecoin's 'easy earning' function! From now on, keeping your USDT in your wallet will earn you no interest at all! Dare to secretly give interest? You'll be fined the equivalent of a house in a day!
Here’s the breakdown, taking you through this 'massacre' in 3 minutes:
1. A major turnaround: This isn't just a small skirmish; the White House is personally stepping in to flip the table!
In the past, exchanges and banks would just push back and forth, but this time it's different! The White House directly convened a 'crypto committee' to host the meeting. To put it simply, the big shots from the banks went to complain: 'Mr. President, the crypto world is using 'deposit money to earn interest' to take away our jobs, our hundreds of billions in deposits are about to be wiped out!'
So what’s the result? The government has listened! To save the banks' lifeline, they decided to target the crypto market. This operation is called national financial security, but in fact, it means that banks cannot lose.
2. Nuclear-level ban: Prohibit 'earning interest'!
What does it mean to prohibit earning interest? Translated into plain language: in the future, if you put stablecoins (like USDT) in exchanges or wallets, thinking that money will grow without doing anything? Not a chance!
· In the past: Depositing coins for interest, feeling great, much better than bank savings.
· Future: Must trade, gamble (speculate), or stake and hustle around, only then might you get some rewards.
· Penalty: Which platform dares to secretly give interest? Caught once, fined $500,000! Directly fined to bankruptcy!
3. The four major 'blows' to us small retail investors:
A. With the benefits gone, who will still play?
In the past, many elderly people entered the crypto market because of high annual returns. Now, it's good, interest rates are zero. For those who only want the interest and don't want the thrill, the crypto market says goodbye! Platforms attracting new users are completely cooled down.
B. Where has all the money gone?
For those who don’t want to hassle, the money will definitely withdraw from exchanges. Where will this money go?
· Either rush into the 'lawless' DeFi (Decentralized Finance): Run to the unregulated places on the chain to continue earning interest (but the risks are huge and easy to be hacked).
· Either go buy US Treasury bonds: directly buy tokens for US Treasury bonds, although it’s a bit troublesome, but at least you’re doing business with the government, which is safer.
C. Giants make a fortune, small coins are finished!
Big players like Tether (the issuer of USDT) take our money to buy US Treasury bonds, earning interest hand over fist. But! These interests used to be shared with us, and now they’re not giving us anything! All swallowed by the giants!
Moreover, a daily fine of $500,000 is unbearable for small companies; in the end, the stablecoin market will only have a few super giants, and monopolization will intensify.
4. Did we kneel, or did we win?
On the surface, it seems that the crypto market has been hit hard (attraction decreased), but this is actually the crypto market’s 'signature' to turn mainstream.
Translate this: 'Government, we promise you, we won’t entice people with interest anymore, just honestly serve as a payment tool. Please hurry up and issue us a legal ID (CLARITY Act)!'
Once the bill passes, although retail benefits will be gone, institutional big money (like pension funds, large consortiums) will dare to enter the market! This is called: sacrificing retail experience for a Wall Street ticket.
What should we focus on next?
After March 1st, let’s see how the law picks apart the wording! If 'rewards' can be interpreted as 'transaction fee refunds' or something similar, then platforms can still find loopholes. If it's directly closed off, then we’ll just honestly accept reality.
Simply summarize in one sentence
It used to be 'depositing coins for interest, living in peace'; in the future, it will be 'either don’t play, or go gamble in a casino'!
