26/08/2025
Banks Feel Threatened by Stablecoins After GENIUS Act
The newly approved GENIUS Act has put U.S. banks on alert as it formally regulates stablecoins, creating an alternative financial system. Banking groups like the American Bankers Association are lobbying to amend the law, worried that stablecoin adoption could sideline smaller banks, which serve as key community touchpoints.
A main concern is a loophole: while stablecoin issuers cannot pay yield directly, third parties like Coinbase and PayPal already offer yield on stablecoin deposits. This puts banks at a disadvantage since they cannot match these returns.
