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U.S. Banks Urge Congress to Close Stablecoin Yield Loophole in GENIUS Act
U.S. Banks Urge Congress to Close Stablecoin Yield Loophole in GENIUS Act
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BTCCSquare news:
Leading U.S. banking groups are escalating pressure on lawmakers to amend the GENIUS Act, warning that its current language allows stablecoin issuers to circumvent a ban on yielding products. The Bank Policy Institute (BPI), alongside major banking associations, argues that affiliates or partner exchanges could still distribute yields—potentially diverting trillions from traditional deposits.
A Treasury Department report estimates $6.6 trillion in potential deposit outflows if yield-bearing stablecoins proliferate. The coalition's letter emphasizes that digital asset market structure legislation must prevent indirect interest payments, which undermine the banking system's lending capacity.
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