GENIUS law raises regulatory controversy, interest loophole of stablecoins attracts attention

According to reports from Crypto In America, the recent GENIUS legal case has faced criticism from banks, state regulators, and consumer organizations in the United States. The core controversy lies in Section 16(d), which allows certain uninsured, state-chartered banks to operate nationwide under OCC regulation, bypassing state approval. Stakeholders have written to the Senate Banking Committee, requesting the removal of this provision, expressing concerns that it undermines state regulation and the safety of the financial system. Meanwhile, the banking industry collectively warns that the limitations on interest payments for stablecoins in the legal case have loopholes that could result in up to $6.6 trillion in bank deposits leaving. Coinbase executives have expressed skepticism, questioning the authenticity of the related data, and stating that the growth of stablecoins has not yet led to a drain of community bank deposits.