Policy makers might be overlooking what really matters in the stablecoin space. A prominent industry figure recently highlighted that reward mechanisms on stablecoins aren't fundamentally changing how lending operates—that part's straightforward. What actually moves the needle? Whether domestic stablecoins can compete on the global stage.

The real question isn't about yield mechanics. It's about whether regulatory approaches are creating friction that pushes users toward offshore alternatives. When the US hesitates on stablecoin incentives, it's not the lending market that suffers. It's market competitiveness. The window for establishing strong domestic stablecoin infrastructure won't stay open forever.