Two leading organizations representing crypto firms are asking lawmakers not to alter the recently passed GENIUS Act, a law that sets the rules for stablecoins in the US.
On August 19, the Crypto Council for Innovation (CCI) and the Blockchain Association sent a letter to the Senate Banking Committee urging senators to reject proposed revisions from banking lobbies.
They argued that the suggested changes would benefit large banks while limiting competition and user choice.
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On August 13, the Bank Policy Institute (BPI), together with the American Bankers Association (ABA) and several state-level associations, warned that the current wording leaves room for stablecoin issuers to work with affiliates or exchanges to offer interest-like returns.
The bankers also stated that such products could lead to a shift of up to $6.6 trillion away from bank deposits. They said this would reduce available credit for households and businesses.
In response, the crypto groups said these issues had already been resolved during negotiations leading up to the law. They claimed that the issues would give banks an unfair advantage and hold back innovation in payments.
The debate also extends to how state and federal authority should interact. A part of the law, Section 16(d), lets subsidiaries of state-chartered banks offer stablecoin services across state borders without applying for separate licenses in every state.
Banking groups want this section removed. CCI and the Blockchain Association argued that removing it would bring back a fragmented system of rules that complicates interstate commerce.
Recently, the US Department of the Treasury invited the public to share feedback on the GENIUS Act. What did they say? Read the full story.
