emergencyBreaking NewsWebull removes $25,000 minimum balance for unlimited day tradingCapital Southwest’s Dividend Cushion Depends on Rate Cuts That Keep Getting Priced InCongressional Testimony on Government Insider Trading Risks to Market Integrity$471 Million Floods Into Bitcoin ETFs — A New Floor for Crypto PricesUSD Coin dominates 42% of trading on Coinone as Circle eyes South Korea without launching a won-pegged stablecoinWebull removes $25,000 minimum balance for unlimited day tradingCapital Southwest’s Dividend Cushion Depends on Rate Cuts That Keep Getting Priced InCongressional Testimony on Government Insider Trading Risks to Market Integrity$471 Million Floods Into Bitcoin ETFs — A New Floor for Crypto PricesUSD Coin dominates 42% of trading on Coinone as Circle eyes South Korea without launching a won-pegged stablecoin
DoiDoi
Credit & Lendingexpand_more
Credit CardsPersonal LoansStudent Loans
Markets & Investingexpand_more
Stocks & ETFsCrypto & BlockchainFed & Macro
Retirement & Benefitsexpand_more
401(k) & IRASocial SecurityRetirement Policy
Real Estateexpand_more
Mortgage RatesHousing Market
Financial Foundationexpand_more
Budgeting & SavingInsurance
Latest News
MarketsPortfolio
The Digital Ledger
Credit & Lending
Markets & Investing
Retirement & Benefits
Real Estate
Financial Foundation
Latest News
Dashboards

Institutional Financial Analysis

Home/Markets & Investing/CRYPTO IRS RULING · CRYPTO MONEY LAUNDERING ENFORCEMENT

White House study removes stability defense for stablecoin yield ban

AD

Arlo Drummond

crypto IRS ruling · Apr 16, 2026

White House study removes stability defense for stablecoin yield ban

Source: DojiDoji Data Terminal

Consumers would lose the ability to earn returns on digital cash if a ban on stablecoin yields is included in the CLARITY Act.

Related Brief1d ago
banking regulation

Stablecoin Rewards May Cost Iowa Community Banks $8.7 Billion in Lending Capacity

Community banks in Iowa may lose $8.7 billion in lending capacity due to deposit shifts toward reward-bearing stablecoins. The American Bankers Association warns that these incentives would accelerate deposit outflows from the banking sector. This risk is the primary sticking point in the U.S. Congress's debate over the CLARITY Act. The current regulatory plan bans stablecoin issuers from directly paying passive yield—interest paid simply for holding a balance. Third-party platforms, such as Coinbase, can offer activity-tied incentives tied to transactions, payments, or platform engagement. The SEC, CFTC, and Treasury must jointly define permissible reward structures and anti-evasion rules within 12 months of enactment. The American Bankers Association estimates that the reduction in lending due to these deposit shifts could reach as much as $8.7 billion in Iowa alone.

A White House Council of Economic Advisers study found that such a prohibition would offer limited support for bank lending and provide little to no benefit to the stability of traditional funding. The study concludes that stablecoin yield products do not currently threaten bank deposits or lending.

Related BriefJust now
stablecoins

USD Coin dominates 42% of trading on Coinone as Circle eyes South Korea without launching a won-pegged stablecoin

USD Coin accounts for 42% of daily trading volume on Coinone, one of South Korea’s major crypto exchanges, as Circle capitalizes on surging demand without launching a won-pegged stablecoin. Circle CEO Jeremy Allaire confirmed the company has no plans to issue a South Korean won-pegged digital currency, sidestepping a regulatory standoff between lawmakers and the Bank of Korea. The central bank and domestic banks oppose allowing tech firms to issue stablecoins, insisting the power belong solely to financial institutions. President Lee Jae-myung campaigned on introducing won-pegged stablecoins, but his administration has been stymied since taking office in June. Allaire, during a visit to Seoul, met with banking executives and crypto leaders, including Coinone, to pitch Circle’s infrastructure as a platform for licensed South Korean entities to issue their own stablecoins. The firm is pursuing a model similar to its expansions in Hong Kong, Singapore, Japan, and Europe—waiting for legal clarity, then seeking a license. For now, Circle’s monetization strategy in South Korea hinges not on launching a new coin, but on the growing use of USD Coin as both a trading pair and investment vehicle.

Lawmakers are currently debating the details of the CLARITY Act in the Senate. Banks have argued that return-bearing stablecoin products threaten deposit stability and could weaken the financial system by diverting funding from banks to digital channels.

Related Brief1d ago
tax law

The PARITY Act would eliminate capital gains taxes on regulated stablecoin payments

Sellers of regulated stablecoin payments would recognize no gain or loss under the new draft of the Digital Asset PARITY Act. The bipartisan proposal, led by Representatives Steven Horsford and Max Miller, would treat routine spending with dollar-pegged stablecoins as non-taxable events. To qualify, a stablecoin must be issued by an authorized entity and maintain its peg within 1% for at least 95% of trading days over the prior 12 months. The bill would deem the taxpayer's basis to be $1 per unit, ignoring fluctuations within a $0.99 to $1.01 band. This shift would align regulated payment stablecoins with foreign currency rules. Current IRS guidance classifies stablecoins as digital assets taxed as property, meaning every use of USDC or USDT to buy goods triggers a reportable capital gain or loss event.

The report changes the terms on which a yield prohibition can be defended, removing the primary evidence-based justification for lawmakers to restrict these returns.

Related Brief2d ago
cryptocurrency

The Clarity Act Targets Cryptocurrency Classification Ambiguities

Digital asset innovation and compliance now depend on the resolution of cryptocurrency classifications and their regulatory treatment. The U.S. Senate is reconvening to consider the Clarity Act to address these ambiguities. The legislative proposal seeks to establish a structured regulatory framework for digital assets.

crypto IRS rulingcrypto money laundering enforcementstablecoin regulationstablecoin US legislation

The Ledger Morning

The essential intelligence to start your trading day. Delivered 6:00 AM EST.

Join 50,000+ professionals who start their day with The Digital Ledger.

No spam. Unsubscribe anytime.

Read More Analysis

SEC retail investor rule

Webull removes $25,000 minimum balance for unlimited day trading

Webull users can now place unlimited day trades in stocks, ETFs, and options without maintaining a $25,000 minimum balan…

dividend cut announcement

Capital Southwest’s Dividend Cushion Depends on Rate Cuts That Keep Getting Priced In

Capital Southwest’s trailing twelve-month NII coverage of the combined dividend is 94%, with the regular dividend covere…

DoiDoi

© 2026 DojiDoji. All rights reserved.

EditorialEditorial GuidelinesCorrections
LegalPrivacy PolicyTerms of Service
DisclosureSEC DisclosuresAd Choice
SocialX (Twitter)LinkedIn