Blockchain Association says no to expanding stablecoin yield prohibition

The Blockchain Association, joined by over 125 crypto industry groups, sent a letter to the US Senate Committee on Banking opposing efforts to expand the stablecoin yield prohibition to include third-party service providers offering customer rewards. They argue that extending the ban, outlined in the GENIUS stablecoin regulatory framework, stifles innovation and leads to greater market concentration by preventing crypto platforms from competing with traditional payment providers like credit card companies and banks that offer similar rewards. The Association contends that these rewards help consumers offset inflation and that prohibiting them creates an unfair advantage for incumbent financial services. Furthermore, the group refutes claims that yield-bearing stablecoins threaten community banks or lending capacity, noting that the banking industry has lobbied against these practices out of fear of losing market share.

(Source：Cointelegraph)