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US Banking Groups Push to Close Stablecoin Yield ‘Loophole’
US Banking Groups Push to Close Stablecoin Yield ‘Loophole’
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BTCCSquare news:
Major US banking associations are pressing Congress to amend the GENIUS Act, citing concerns over a regulatory gap that could allow stablecoin issuers to circumvent restrictions on yield payments. The Bank Policy Institute, alongside the American Bankers Association and others, warns that affiliate-based yield offerings might destabilize the financial system.
A Treasury estimate suggests yield-bearing stablecoins could trigger $6.6 trillion in bank deposit outflows, potentially raising borrowing costs and reducing loan availability. The GENIUS Act currently prohibits issuers from direct yield payments but remains silent on affiliated entities—a loophole banks argue demands immediate closure.
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