ChainCatcher news, according to Cointelegraph, several banking groups, including the Bank Policy Institute (BPI), have warned Congress to close the regulatory loophole regarding stablecoin yields in the GENIUS Act. This loophole allows stablecoin issuers to provide yields to holders through affiliated companies.

Banking groups have stated that this could lead to up to $6.6 trillion in deposits flowing out of the traditional banking system, affecting credit supply and raising borrowing costs.