Congress is on the verge of a significant shift in the American financial system through its work on crypto regulation, particularly around stablecoins. However, some lawmakers are pushing for changes that would limit stablecoin rewards to only those transactions involving purchases, effectively ignoring the nature of stablecoins as debit products. This proposal risks damaging the progress made under the GENIUS Act, which was designed to foster innovation in the stablecoin space. By treating stablecoins like credit cards, Congress might inadvertently create a “Holding Tax” that penalizes individuals who hold digital dollars without spending them. The current system allows stablecoin holders to earn rewards based on the yield from reserve assets, such as U.S. Treasuries. For example, someone holding $10,000 in USDC at a 4.5% yield would generate $450 annually. Under the proposed transaction-only rewards system, that same user would need to spend $22,500 just to receive the same amount back through retail rewards. This approach fails to consider how stablecoins are used in real life, particularly for B2B transactions and supply chain logistics. If businesses can't earn rewards on their stablecoin holdings simply because they aren't making retail purchases, they may seek alternatives outside the U.S. regulatory framework. This could lead to a significant loss of liquidity and demand for U.S. Treasuries, undermining the potential benefits of a regulated stablecoin market. The proposal reflects outdated thinking that doesn't align with the realities of how stablecoins operate. To maintain a competitive edge in the global market, lawmakers need to allow stablecoin economics to thrive based on the act of holding the asset, not just on transactional use.