According to Deep Tide TechFlow, on August 20, CoinDesk reported that cryptocurrency industry organizations are strongly opposing Wall Street banks' amendments to the U.S. (GENIUS Stablecoin Act). The Crypto Council for Innovation and the Blockchain Association sent a letter to the Senate Banking Committee on August 19, urging them to reject the proposed amendments from banking groups such as the American Bankers Association.
The banking industry hopes to remove Section 16(d) of the bill, which allows state-chartered institution subsidiaries to support stablecoin issuance activities across state lines. Banking groups warn this could lead to regulatory arbitrage and potentially siphon off up to $6.6 trillion in deposits from the U.S. banking system.
The cryptocurrency industry rebuts that research shows no significant link between stablecoin adoption and outflows from community bank deposits, and that most stablecoin reserves remain within the financial system. They emphasize that allowing stablecoin users to earn yields, especially in a situation where the average checking account in the U.S. pays only a 0.07% annual yield, will ensure fair competition, particularly for consumers underserved by traditional banking.