US Bankers Warn Stablecoin Yield Workarounds Threaten Local Lending

The GENIUS Act can drain $6.6T from U.S. banks – THIS is how

Banks warn that a loophole allowing affiliates to pay yield on stablecoins could undermine the GENIUS Act entirely.

Stablecoins Risk Threatens Traditional Bank Deposits

U.S. bankers are warning about a possible threat to traditional bank deposits. They say that yield-bearing stablecoins, which are digital currencies that pay interest, could pull up to $6.6 trillion out of regular bank accounts. This stablecoin risk could affect the local lending and the financial system. Regulators say that any big change won’t happen overnight. Still, the warning shows the rising concern about how digital finance is now changi…

US Bankers Warn Stablecoin Yield Workarounds Threaten Local Lending

Industry figures argued that banks’ concerns are valid but exaggerated, urging the creation of comparable rules without stifling innovation.

US community banks calls for revision of GENIUS Act, fix 'loophole' - CoinCodeCap

Key Takeaways The American Bankers Association’s Community Bankers Council submitted a letter Monday urging lawmakers to strengthen the GENIUS Act “Some companies have exploited a perceived loophole allowing stablecoin issuers to indirectly fund payments to stablecoin holders through digital asset exchanges…” the community bank leaders wrote. More than 200 community bank executives have called on the US Senate to revise federal stablecoin legis…

ABA Presses Congress to Close Stablecoin Yield Loopholes

Community bankers urged Congress to amend the GENIUS Act to stop stablecoin issuers and partners from offering any yield or rewards.

Community Banks Warn Senate About Stablecoin Risks to Local Loans · Cardano Feed

The council said crypto firms are using loopholes to offer rewards, which could put bank deposits and loans at risk. Key Highlights Community banks warned the U.S. Senate that...