According to BlockBeats, on August 14, The Block reported that the largest banking association in the U.S. is urging senators to address the so-called loopholes in the stablecoin bill signed by President Trump last month, stating that these loopholes could jeopardize the broader financial system.
This week, the American Bankers Association (ABA) and 52 other banking organizations sent a letter to the leadership of the Senate Banking Committee, proposing amendments to the (U.S. Stablecoin Innovation and Establishment Act) (GENIUS). The letter pointed out concerns regarding the bill's provisions on interest payments, state-level regulation, and non-financial companies issuing stablecoins.
The focus of controversy lies in the fact that the GENIUS Act's prohibition on interest payments to holders of stablecoin issuances is considered too lenient. Although these groups support restrictive measures, they believe the new law can easily be circumvented by exchanges, brokers, and other related parties, thus 'distorting market incentives' and transforming stablecoins from mere payment tools into potential stores of value and credit instruments.