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Banking Coalition Urges Senate to Address Stablecoin Law Loopholes
Banking Coalition Urges Senate to Address Stablecoin Law Loopholes
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BTCCSquare news:
Major banking groups, including the American Bankers Association and the Bank Policy Institute, are pressing Congress to amend the GENIUS Act, the nation's first significant stablecoin legislation. The coalition warns that current loopholes allowing third-party interest payments on stablecoins could destabilize traditional banking systems.
A Treasury Department report highlights a potential $6.6 trillion deposit flight risk, which could disrupt lending markets and increase borrowing costs. Meanwhile, crypto firms like Paxos and Circle are advancing their regulatory standing by pursuing national banking charters.
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