Fear has been cited as the main reason why banks may be the main culprit
Earlier this month, the GENIUS Act failed to pass a full Senate vote, as the bill didn’t get the 60 votes needed
Nine Senate Democrats were against it, along with two of their Republican peers
There is a discussion going on among crypto enthusiasts, with the topic being that someone is adamant about tanking the stablecoin legislation.
The main suggested culprits are regional US banks, and Ripple’s CTO David Schwartz seems to agree, saying: “That’s what I’m hearing.”
Banks’ Fear of Disintermediation Cited as Key Motive
Fear has been cited as the main reason why this may be true. Banks fear stablecoins could disintermediate their market share, with critics like Senator Elizabeth Warren proposing amendments to block tech firms from issuing stablecoins. This just highlights tensions between traditional finance and crypto innovation.
The notion isn’t anything new, as it’s been talked about before how traditional banking institutions perceive stablecoins as a competitive threat to their dominance in payment systems. This also explains why the stablecoin bill GENIUS Act fa…
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