Stablecoin Rewards Debate Intensifies As Tether Backs Anchorage Digital
U.S. stablecoin legislation remains stalled over yield and rewards, even as Tether invests $100 million in Anchorage Digital, highlighting the gap between regulatory debate and market activity.
The question of whether stablecoins should be allowed to offer yield is emerging as one of the most consequential and contentious issues in U.S. crypto regulation, even as major capital commitments signal growing confidence in regulated digital asset infrastructure.
This week, Anchorage Digital announced a $100 million strategic investment from Tether, valuing the federally chartered digital asset bank at $4.2 billion. The investment follows an expanding partnership between the two firms, including Anchorage’s role as Tether’s U.S. stablecoin issuer.
Anchorage said the funding reflects years of regulatory engagement and infrastructure development, positioning the company to serve institutional demand for compliant custody, trading, staking, and stablecoin issuance. The firm also announced its first employee tender offer, allowing early contributors to participate in the company’s growth.
Founded in 2017, Anchorage Digital is the first federally chartered crypto bank in the United States. Its services span custody, settlement, governance, trading, and stablecoin issuance for institutional clients. Last week, Anchorage and Tether partnered on the issuance of a U.S.-focused, dollar-backed stablecoin designed to align with the proposed GENIUS Act, which would establish a federal framework for payment stablecoins.
Tether CEO Paolo Ardoino said the investment reflects a shared belief in building secure, transparent, and resilient financial systems, and described Anchorage Digital as a standard-setter for institutional crypto infrastructure and U.S. stablecoin issuance.
The announcement comes as stablecoin legislation remains stalled in Washington. According to Reuters, a closed-door meeting held Monday at the White House brought together representatives from the banking and crypto industries in an attempt to resolve differences over market structure legislation. The meeting, hosted by the administration’s crypto policy council, failed to produce a breakthrough on the issue of stablecoin rewards or interest-like features.
Participants included banking trade groups such as the American Bankers Association and the Independent Community Bankers of America, alongside crypto advocacy organizations including the Blockchain Association and The Digital Chamber.
While both sides described the talks as constructive, people familiar with the discussions said no agreement was reached on whether stablecoins should be allowed to distribute yield or rewards. That question has become one of the primary roadblocks preventing crypto market structure legislation from advancing.
Banking groups argue that yield-bearing stablecoins could accelerate deposit outflows from traditional banks and undermine credit creation. The American Bankers Association has urged lawmakers to ensure the GENIUS Act closes any potential loopholes that would allow crypto firms to offer interest-like returns on payment stablecoins.
Crypto industry groups counter that yield has become a baseline expectation in a high-interest-rate environment and that prohibiting it risks pushing innovation offshore. Summer Mersinger, CEO of the Blockchain Association, said the White House meeting marked progress, but acknowledged that stablecoin rewards remain one of the final unresolved issues.
Taryn Wolf
Similarly, Cody Carbone, CEO of The Digital Chamber, said his organization remains optimistic that lawmakers can resolve the issue before the current Congress adjourns.
Today, the crypto and banking industry came to the table at the @WhiteHouse to discuss a critical issue to moving market structure legislation forward, stablecoin yield. pic.twitter.com/3gUMrbUVKc
— The Digital Chamber (@DigitalChamber) February 2, 2026
Against this backdrop, Tether’s investment in Anchorage is indicative of the divergence in the stablecoin landscape: while policymakers debate whether yield should be permitted at all, companies and capital continue to move forward,
