Crypto Industry Unites Against GENIUS Act Expansion on Stablecoin Rewards
Over 125 cryptocurrency and fintech organizations, including the Blockchain Association, have formally opposed the GENIUS Act's proposed expansion of stablecoin yield restrictions. In a letter addressed to Senate leaders, the coalition argued that limiting rewards would stifle innovation and unfairly advantage traditional banks.
The groups compared stablecoin incentive programs to credit card rewards, noting their role in driving adoption and supporting household financial resilience. Current banking yields—0.07% for checking and 0.40% for savings accounts—pale against stablecoin rewards programs that help families preserve purchasing power amid 3.5-3.75% federal rates.
Industry representatives warn that restrictive legislation could diminish stablecoins' utility in digital payment systems. The debate highlights growing tensions between decentralized finance models and traditional financial regulation.
