Crypto Industry Pushes Back Against Proposed Stablecoin Yield Restrictions
The Blockchain Association has mobilized over 125 crypto and fintech entities to oppose Senate efforts expanding stablecoin yield bans beyond current legislation. The coalition emphasizes that third-party platforms should retain rights to offer rewards—a distinction explicitly preserved in the GENIUS Act.
Banking groups counter that such rewards create regulatory arbitrage, potentially diverting deposits from traditional institutions. Treasury analyses cited by banks warn of systemic risks if stablecoins gain yield-bearing traction without oversight.