SS #38 - Crypto Mobilizes Against Wall Street Lobbying to Protect Stablecoin Rewards

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Good Morning! While the wider market is buzzing over Bitcoin's recent push toward new highs, the real drama is unfolding in the stablecoin sector. This past week, the stablecoin market cap quietly surged past $300B for the first time, signaling massive growth amid the crypto rebound.

Yet, this growth comes with geopolitical friction: The rouble-backed stablecoin A7A5, which is linked to sanctioned Russian entities, was a high-profile sponsor at the major TOKEN2049 conference, underscoring the severe challenges of enforcing Western sanctions across global crypto venues.

Regardless of what the market brings, you can rely on Stablescope to deliver the latest, most critical updates from the stablecoin sector directly to your inbox.

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In Today's Edition:

• Headline: Crypto Mobilizes Against Wall Street Lobbying to Protect Stablecoin Rewards

• Quick Bites: Bank of England Plans Stablecoin Cap Exemptions

• Yield of the Week: 82.67% APY on 246 Club

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HEADLINE

Crypto Mobilizes Against Wall Street Lobbying to Protect Stablecoin Rewards

State of play: A prominent crypto advocacy group is mobilizing its massive member base to counter intense lobbying by Wall Street banks aimed at banning stablecoin rewards.

• Stand With Crypto galvanized its members to send over 250,000 messages to U.S. senators, defending the right for consumers to earn rewards on stablecoins.

• Banks are trying to eliminate a provision in the GENIUS Act that currently allows stablecoin issuers' affiliates or exchanges to offer yields, arguing this "loophole" could lead to a significant loss of traditional bank deposits.

• The implementation and adoption of the new stablecoin law by U.S. financial regulators are currently derailed due to a government shutdown.

What’s Next: Banks will escalate lobbying to kill the yield "loophole" in the GENIUS Act. Crypto's grassroots counter-campaign will intensify, framing this as a consumer rights issue. The current shutdown delays regulatory clarity, guaranteeing a major post-reopening legislative battle.

Why it Matters: This fight determines if US stablecoins can compete, as yield is critical to their utility and innovation. Banks' aggressive push confirms stablecoins are now seen as an existential threat to their core deposit base. Failure to protect yield will stifle US crypto growth and push activity offshore.

Our Take: The strategy is to leverage the 250K-message grassroots power to frame yield as a consumer right versus bank protectionism. Issuers must simultaneously develop non-yield utility to future-proof their business models. Winning this protects the most critical rail of US crypto finance.

QUICK BITES

• Citi invests in BVNK.

• Coinflow raises $25M.

• Ripple expands into Bahrain in boost for RLUSD.

• Bank of England plans stablecoin cap exemptions.

• Tether plans to propose candidates for soccer club juventus board seat.

• Ethena and Jupiter partner to launch native Solana stablecoin JupUSD.

• North Dakota and Fiserv to launch the state's 'Roughrider' stablecoin next year.

YIELD OF THE WEEK

246Club TelosC USDT0: 14.88%-82.67% APY

• 246Club’s Cross-Protocol Arbitrage enables users to capitalize on interest rate differences by using a yield-generating position in one protocol as collateral to secure a leveraged loan from a separate protocol.

• Unlike traditional single-protocol lending, 246 Club deposits a user's collateral into a distinct yield source (e.g., a Morpho vault) to generate returns, while the leveraged borrowing is sourced from another protocol (e.g., Aave) via delegated borrowing power.

• Opening a position involves leveraging a single yield source against a single borrow asset up to a maximum LTV ratio, the position lacks a fixed repayment schedule but is subject to liquidation if the LTV exceeds a predefined threshold.

Silo PT-sUSDai (19 Nov 2025) - USDC market: 46.9% APY

• Silo v2 markets operate in isolation, meaning risks like exploits or liquidation failures are contained within a single market and do not spread to others, contrasting with multi-token pools where lenders face shared risk.

• While Silo markets are fundamentally non-upgradable, deployers retain the ability to modify certain parameters, such as oracles, by utilizing proxy contracts.

• A deposit of PT-sUSDai (19 Nov 2025) from Pendle into Silo yields a 46.9% Supply APR and operates under specific risk metrics, including a Max LTV of 90%, a Liquidation Threshold of 93%, and a Liquidation Fee of 3.5%.

Kamino SyrupUSDC/CASH Multiply: 7.74%-70.76 APY

• Kamino Multiply feature creates a leveraged position on Kamino Lend in a single step, using SyrupUSDC as collateral and incurring CASH debt, thereby increasing exposure to both assets' respective APYs.

• The position's expected performance is tracked by the Net APY, which indicates that the leveraged position will outperform a simple holding of SyrupUSDC if the SyrupUSDC APY is higher than the CASH borrow APY.

• The position operates with a Max LTV of 88%, and users are subject to standard borrow rates on the debt tokens, plus a small 0.001% flashloan fee designed to prevent spam.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.