#ETHRally

Banks demand to prohibit exchanges from accruing interest on staking stablecoins!

Key arguments:

1. Stablecoins are not bank deposits and money market funds (MMF). Because:

- they are not regulated as strictly as banks.

- they do not fund loans, unlike banks.

- they do not invest in securities to generate income like MMF.

2. The U.S. Treasury estimated back in April potential deposit outflows from banks of up to $6.6T if staking stablecoins becomes a popular financial solution.

3. The GENIUS Act only prohibits stablecoin issuers from paying interest income, but this does not apply to affiliated companies - a loophole.

For example, Circle cannot pay for holding USDC, but Coinbase can.

4. Financial stress in the country = deposit outflows, rising interest rates / fewer loans, increasing household expenses.

Initiators: Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, Independent Community Bankers of America.