The stablecoin market has recently stirred up another wave of turbulence. Major financial institutions are starting to get uneasy—they worry that these interest-bearing digital assets might steal business from traditional banks.

The most straightforward warning comes from industry heavyweight players. The CFO of a financial giant explicitly expressed their stance at the latest earnings call: yield-bearing stablecoins are building a "parallel banking system," completely outside the scope of traditional banking regulation. He bluntly called this "dangerous and unacceptable."

Interestingly, this institution originally supported setting safeguards for stablecoins. But the core issue is—once stablecoins acquire features typical of traditional banks (such as interest-paying deposits), yet escape proper prudent regulation, it becomes a double standard. Banks welcome innovation, but on the premise that they do not establish separate entities outside the law.

This concern is not unfounded. The US banking industry has long been complaining that their business models might be disrupted. Congress is also taking action—the latest proposed amendments to digital asset regulation explicitly prohibit service providers from paying interest solely because users hold stablecoins. However, liquidity mining, governance token rewards, and staking yields are still allowed. This is about finding a balance—preventing stablecoins from evolving into unregulated shadow banks while leaving room for innovation.