Billionaire Investor Calls No-Interest Stablecoins ‘Outrageous’ as Key US Bill Advances
Philippe Laffont criticized the concept of non-yielding stablecoins, calling it “outrageous” as U.S. lawmakers advance a bill prohibiting interest-bearing dollar-pegged tokens. Laffont, founder of Coatue Management, argued that stablecoins should provide passive income through simple contracts at the spot rate. The push for yield-bearing stablecoins has become contentious among crypto lobbyists, banks, and regulators, particularly with the introduction of the GENIUS Act, which aims to regulate stablecoins. Financial regulators express concerns that such tokens could lead consumers to withdraw funds from regulated institutions in favor of riskier crypto platforms. Stablecoin market capitalization has surged to $251 billion, a 55% increase year-on-year, driven by heightened trading activity and clearer U.S. policy signals. Companies like BitGo and BitGet have launched new dollar-pegged tokens, while Circle's stock price has risen nearly 250% since its IPO.
