Tether is generating approximately $41 million in daily profit from interest-bearing reserves backing its USDT stablecoin, which has a market capitalization of $183.2 billion. Concerns are growing over the sustainability of this profitability due to regulatory challenges and potential declines in interest rates.

Treasury Secretary Scott Bessent confirmed second-round interviews for the next Federal Reserve chair will begin soon, with all five finalists expressing favorable views on cryptocurrency. Christopher Waller and Michelle Bowman have advocated for stablecoins and greater central bank engagement with digital assets, while Kevin Warsh remains skeptical of Bitcoin's role as a reliable unit of account. Rick Rieder and Kevin Hassett, who have ties to BlackRock and Coinbase respectively, see Bitcoin as a portfolio diversifier and inflation hedge.