Recently, a storm has erupted in the U.S. financial sector. Large banks are calling for revisions to the newly introduced stablecoin regulatory regulations, and the reasons behind this are quite intriguing. The high interest rates of over 4% offered by stablecoin platforms starkly contrast with the nearly zero interest rates on bank savings accounts, raising concerns within the banking industry. They worry that the public will shift their deposits to stablecoin platforms, resulting in a significant loss of bank deposits.

This phenomenon reveals two important signals: first, the traditional banking industry has recognized that cryptocurrencies are no longer marginalized financial products, but have become competitors that pose a substantial threat to the traditional financial system. Second, regulation is becoming a protective barrier for traditional financial institutions, trying to limit the development of the cryptocurrency industry by establishing rules to safeguard their own interests.

According to data from blockchain analysis company Chainalysis, over $1.3 trillion has flowed from the traditional financial system into the stablecoin market. Banks claim to care about consumer protection, but they are actually more concerned about the continued loss of deposits. For example, the PYUSD launched by PayPal last year supports a model that allows coin holders to earn interest; if widely adopted, it could have a significant impact on the banks' deposit business.

This series of events raises a core question: If banks truly care about user interests, why do they choose to participate in competition by lobbying regulatory agencies to suppress competitors instead of raising deposit Intrerest Rates? This approach not only exposes the conservative attitude of traditional financial institutions in the face of emerging financial technologies but also reflects their inability to adapt to market changes.

With the continuous development of financial technology, traditional banking faces unprecedented challenges. They need to rethink their business models and improve service quality and efficiency, rather than relying on regulation to maintain their monopoly position. At the same time, regulatory agencies should also find a balance between protecting consumer interests and promoting financial innovation, creating a fair environment for healthy competition between old and new financial models.

This controversy marks a critical turning point for the financial industry. In the future, we may see more integration and collision between traditional financial institutions and emerging financial technologies, which will drive the entire industry towards a more open, efficient, and inclusive direction.