Columbia professor says US banks' stablecoin yield fears are "unsubstantiated myths"

On Monday, Columbia Business School adjunct professor Omid Malekan argued that U.S. banks are promoting unfounded myths about stablecoin yields to shield their profits as crypto market structure legislation moves toward markup. He said the real dispute centers on who captures interest from stablecoin reserves and claimed that allowing issuers to share yields with users would impact bank profitability more than deposits or lending. Malekan urged Congress to focus on innovation and consumer benefit instead of protecting large, highly profitable banks.