Crypto advocacy groups are opposing Wall Street bankers' attempts to amend the U.S. stablecoin law, known as the GENIUS Act. In a letter to the Senate Banking Committee, the Crypto Council for Innovation (CCI) and the Blockchain Association urged lawmakers to disregard recommendations from the American Bankers Association (ABA) and state banking groups. The bankers argue for tighter regulations that could prevent stablecoin issuers from offering yield through exchanges or affiliates, claiming this loophole threatens traditional bank deposits. However, the crypto advocates contend that the banking lobby is trying to manipulate established agreements to gain an unfair advantage, which could hamper innovation and consumer choice. They emphasized that payment stablecoins differ from bank deposits, highlighting that stablecoins do not fund loans. The letter also defended a provision that allows subsidiaries of state-chartered institutions to operate stablecoin businesses across state lines without additional licenses. The crypto groups criticized calls to repeal this provision, arguing it would disrupt interstate commerce and stifle growth in the industry.

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