US Banking Groups Push to Close Stablecoin Yield ‘Loophole’
0GENIUS Act
Stablecoin
stablecoin regulation
The Bank Policy Institute (BPI) said the law’s current wording leaves room for stablecoin issuers to offer yield indirectly through affiliated exchanges or other partners.
Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...
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Several major US banking associations are urging Congress to tighten new stablecoin regulations, warning that a gap in the GENIUS Act could allow issuers to skirt restrictions on paying interest to holders.
Key Takeaways:
TUS banking groups want Congress to close a GENIUS Act loophole allowing stablecoin yield via affiliates.
They warn yield-bearing stablecoins could trigger $6.6T in bank deposit outflows.
Such outflows could raise interest rates, cut loan availability, and increase borrowing costs.
In a letter sent Tuesday, the Bank Policy Institute (BPI) said the law’s current wording leaves room for stablecoin issuers to offer yield indirectly through affiliated exchanges or other partners.
The BPI was joined by the American Bankers Association, Consumer Bankers Association, Independent Community Bankers of America, and...
https://cryptonews.com/news/us-banking-groups-push-to-close-stablecoin-yield-loophole/
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