Banks Sound Alarm: GENIUS Act’s Stablecoin Yield Loophole Demands Immediate Fix

Wall Street finally found something it hates more than crypto—a regulatory loophole letting stablecoins out-bank the banks.

The GENIUS Act's yield provision—dubbed 'DeFi's backdoor to mainstream finance'—has traditional lenders screaming foul. Turns out, 5-7% APY without FDIC insurance wasn't part of their innovation roadmap.

Behind closed doors, lobbyists are scrambling to patch what one exec called 'the ultimate irony—banks getting disrupted by pretend dollars.' Meanwhile, stablecoin issuers quietly onboard another $2B in institutional cash this quarter.

Regulators face their Sophie's Choice: protect the legacy system or let free markets decide where yield belongs. Either way, the genie's not going back in the bottle—even if Jamie Dimon personally stuffs it in a vault.