Major banking associations are advocating for changes to newly passed stablecoin legislation, claiming that key provisions threaten their business interests. These banking groups, representing the industry, are urging the Senate to revise the GENIUS Act, which establishes a federal framework for stablecoin issuance and trading. Their concerns focus on the potential $6.6 trillion shift of funds from insured bank accounts to the uninsured stablecoin market. In response, crypto lobbying firms, including the Blockchain Association, are countering these demands, arguing that allowing state-chartered stablecoin issuers to operate nationally is essential for competitiveness and consumer choice. They maintain that limiting these operations would hinder broader industry growth and stifle competition. The discussion highlights a clash between traditional banking sectors and the rapidly evolving cryptocurrency landscape, underscoring regulatory challenges and the complex interplay between new financial technologies and established financial institutions.

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