🇺🇸 American banks demand a ban on exchanges accruing interest on stablecoin staking!

"The loophole in the Genius Act needs to be closed"

Key arguments:

1. #Стейблкоины - these are not bank deposits and money market funds (MMF). Because:

- they are not regulated as strictly as banks.

- they do not fund loans, unlike banks.

- they do not invest in securities to generate income, like MMF.

2. The U.S. Treasury estimated back in April that possible outflows of deposits from banks could reach $6.6T if stablecoin staking becomes a popular financial solution.

3. #GENIUS Act only prohibits stablecoin issuers from paying interest income, but this does not apply to affiliated companies - a loophole.

For example, Circle cannot pay for holding $USDC , but Coinbase can.

4. Financial stress in the country = outflow of deposits, rising interest rates / fewer loans, increasing household expenses.

Initiators: Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Financial Services Forum, Independent Community Bankers of America.