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According to two sources familiar with the matter, Trump administration officials are considering imposing sanctions on EU or member state officials responsible for enforcing the Digital Services Act (DSA), as the U.S. side complains that the law censors American speech and increases costs for U.S. tech companies, according to a report by Jinse Finance. This would be an unprecedented move and would further intensify the conflict between the U.S. government and Europe. The Trump administration believes that Europe’s actions are aimed at suppressing conservative voices. Senior officials at the U.S. State Department have not yet made a final decision on whether to proceed with this punitive measure, which could take the form of visa restrictions. U.S. officials held internal meetings on this issue last week.

According to a report by Jinse Finance, Ronit Ghose, Head of Future Finance at Citi, has warned that if stablecoin holders receive interest, it could trigger a large-scale outflow of bank deposits similar to the rise of money market funds in the 1980s, thereby increasing banks’ funding costs and the price of credit. PwC consultant Sean Viergutz also noted that if consumers shift to high-yield stablecoins, banks may be forced to rely on wholesale funding or raise deposit rates, which would increase borrowing costs for businesses and households. Currently, the U.S. GENIUS Act prohibits stablecoin issuers from directly paying interest, but does not ban exchanges or affiliated companies from offering yields. U.S. banking groups are calling on regulators to close this “loophole” to prevent a massive outflow of deposits.