U.S. Banks Urge Lawmakers to Amend GENIUS Act
- A coalition of U.S. banks is urging lawmakers to rewrite the GENIUS Act.
- The focus is on reward structures offered by non-bank stablecoin issuers.
- Banks view crypto platforms’ ability to offer yield on digital dollars as a loophole.
- This perceived loophole threatens to divert deposits from the traditional banking system.
U.S. banks are concerned about the impact of non-bank stablecoin issuers offering yields, which they see as a potential threat to their deposit base. This has led them to push for changes in legislation targeting these reward structures.
The coalition’s move highlights the growing tension between traditional financial institutions and DeFi platforms over customer deposits and yield offerings on digital assets like stablecoins. (Source)
