The American Bankers Association recently joined 52 banking organizations to write a letter to the Senate Banking Committee, mainly discussing the GENIUS stablecoin bill. To be honest, these bankers have significant concerns about this bill, especially regarding several key provisions that they find problematic.

The letter clearly states that the current version of the bill has not adequately addressed several critical points. First is the issue of interest payments; although the bill states that stablecoin issuers are prohibited from paying interest to holders, the wording of this prohibition is particularly loose, essentially leaving a large loophole. Bankers are worried that if this continues, it will be easy to exploit these gaps, leading to a chaotic market order.

Moreover, regarding state-level regulation, the bill grants too much power to individual states. These banking organizations believe that with such an important financial product as stablecoins, if each state establishes its own regulatory standards, it would create a complete mess. They suggest that the federal level should provide a more unified regulatory framework.

What troubles them the most is the issue of non-financial companies issuing stablecoins. Currently, the bill is too lenient on this matter; if technology companies and other non-financial institutions start issuing stablecoins, who will oversee critical issues like risk control and capital reserves? Bankers are shaking their heads, saying this is simply playing with fire.

In my opinion, these bankers are anxious. As the stablecoin market continues to grow, if regulatory policies do not establish clear rules soon, it will be too late when problems arise. Their letter is quite timely; it's just uncertain whether the senators will pay attention. Now, it depends on how this bill will be amended; if the amendments are good, everyone will feel reassured; if not, there will be plenty of trouble ahead.