Finish the job on digital asset market structure

CoinDesk

by J Christopher Giancarlo

February 19, 2026

AI-Generated Deep Dive Summary

The United States faces a critical decision point as lawmakers grapple with digital asset market structure legislation. With global finance increasingly reliant on digital innovations, Congress must act to establish regulatory clarity or risk ceding leadership in the next generation of finance. The current stalemate revolves around stablecoin yield and rewards, pitting banks against crypto platforms over concerns about deposit outflows and prudential oversight. However, these issues are more about design than systemic risk, as empirical evidence shows no meaningful impact of stablecoins on bank deposits. The GENIUS Act permits crypto companies to offer rewards for holding stablecoins, yet banks argue this undermines their traditional savings products. This conflict, while significant, is not an existential threat to the banking sector. Instead, it presents an opportunity for compromise: allowing federally regulated banks to offer yield on payment stablecoins could level the playing field, enabling banks to compete in the digital payments space and attract customers without compromising financial stability. A workable solution exists that balances the interests of both banks and crypto platforms. By explicitly enabling banks to participate in the stablecoin market, Congress can foster competition while maintaining regulatory oversight. This approach not only addresses immediate concerns but also advances broader market structure reforms, ensuring the U.S. remains competitive in the global financial landscape. The stakes are high for American consumers, who stand to benefit from increased competition and innovation in payment services. By treating the yield issue as a design challenge rather than an existential threat, Congress can move forward on critical regulatory reforms, providing much-needed clarity and fostering economic dynamism. The outcome of this decision will determine whether the U.S. leads or lags in shaping the future of finance. This matters to crypto enthusiasts and financial professionals alike, as it underscores the importance of regulatory balance in unlocking the full potential of digital assets. By addressing these issues thoughtfully, Congress can ensure that the U.S. remains at the forefront of innovation while safeguarding its financial system.

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Originally published on CoinDesk on 2/19/2026