Hundreds of Crypto Firms Slam US Bank’s Lobby to Prohibit Stablecoin Yields

A coalition of over 125 cryptocurrency companies, including Coinbase, Gemini, and Kraken, has strongly opposed US banking lobbyists who are pushing to close a loophole in the recently enacted GENIUS Act. This loophole currently permits third-party platforms to offer interest yields on stablecoin deposits, which the banking lobby argues constitutes regulatory arbitrage and poses a systemic risk to traditional finance, potentially causing $6.6 trillion in deposit outflows.

The crypto coalition argues that reopening this issue undermines regulatory certainty established by the Act. They contend that the banks' efforts are protectionist, aimed at maintaining a monopoly on low-interest deposits and preventing consumers from accessing higher yields available through stablecoin reward programs, which help households combat inflation. Key figures like Gemini co-founder Tyler Winklevoss characterized the banking lobby's actions as an attempt to relitigate a settled legislative compromise.

(Source：BeInCrypto)