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GENIUS Act Sparks Regulatory Controversy, Banking Industry Warns of Stablecoin Interest Rate Loophole
Summary: According to Crypto In America, the US 'GENIUS Act' Section 16(d) has sparked regulatory controversy, allowing some state-chartered banks to conduct nationwide business under federal regulation without state approval. Banking regulatory associations jointly wrote to the Senate Banking Committee, warning that this provision weakens state regulatory authority and could jeopardize financial system stability. The banking ...
According to Crypto In America, the US 'GENIUS Act' Section 16(d) has sparked regulatory controversy, allowing some state-chartered banks to conduct nationwide business under federal regulation without state approval. Banking regulatory associations jointly wrote to the Senate Banking Committee, warning that this provision weakens state regulatory authority and could jeopardize financial system stability. The banking industry groups also pointed out that while the act prohibits stablecoin issuers from paying interest, exchanges and other institutions may circumvent the rules, potentially leading to up to $6.6 trillion in bank deposits outflow. Coinbase's policy chief countered that this data lacks evidence.
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Link: GENIUS Act Sparks Regulatory Controversy, Banking Industry Warns of Stablecoin Interest Rate Loophole [Copy]
