David Sacks, the entrepreneur appointed by Donald Trump known as the "Crypto Czar," questioned the recently approved GENIUS Act, arguing that it was traditional banking that imposed the conditions to limit competition from stablecoins. According to Sacks, the prohibition on issuers transferring interest to holders was a necessary "compromise" to gain the support of banks, which see stablecoins as a direct threat to their business model.
The GENIUS Act, approved on June 20, 2025, seeks to regulate stablecoins in the U.S. with the aim of protecting consumers. However, the prohibition on passing interest to holders has generated controversy. This means that the new law prevents stablecoin issuers (such as companies or platforms that create and manage these assets) from paying interest to those who hold those tokens (holders).
Sacks argued that this measure was not essential for the law's approval, but was imposed due to pressures from community banking, which fears that a 5% interest on stablecoins would put them "out of business."
Although Sacks acknowledges the banking concerns, he considers them exaggerated.
Sacks' criticism seems to resonate in the community, where it is perceived that the law protects traditional interests at the expense of competition. Max Keiser, for example, expressed his discontent, stating that stablecoins "are designed to be a gateway to the U.S. dollar, empowering politicians and issuers who work with traditional banks to combat Bitcoin's self-custody."
For many, the GENIUS Act, while promoting adoption, also stifles innovation by prioritizing traditional banking.
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