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Reuters: US Banks Lobby to Stop Payment of Interest with Stablecoins Due to Fear of Capital Outflow
Summary: According to Reuters, US banks are pushing to amend new stablecoin regulations, fearing that these rules could trigger trillions of dollars in capital outflows, highlighting the increasingly fierce competition between Wall Street and the cryptocurrency industry. Last week, banking lobbying groups including the American Bankers Association (ABA), the Bank Policy Institute (BPI), and the Consumer ...
According to Reuters, US banks are pushing to amend new stablecoin regulations, fearing that these rules could trigger trillions of dollars in capital outflows, highlighting the increasingly fierce competition between Wall Street and the cryptocurrency industry.
Last week, banking lobbying groups including the American Bankers Association (ABA), the Bank Policy Institute (BPI), and the Consumer Bankers Association (CBA) warned lawmakers of regulatory loopholes that may allow some cryptocurrency exchanges to indirectly pay interest to stablecoin holders.
The Genius Act, a law passed by the US Congress in July, aims to regulate the $288 billion global stablecoin market, prohibiting issuers from paying returns or interest to customers. Under the new rules, banks can issue their own stablecoins but are not allowed to pay any interest.
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Link: Reuters: US Banks Lobby to Stop Payment of Interest with Stablecoins Due to Fear of Capital Outflow [Copy]
