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Crypto Industry Executives: Amending GENIUS Act Could Pose 'National Security Trap'
Summary: Several crypto industry executives and advocacy groups have warned that amending the stablecoin regulatory framework under the GENIUS Act, as requested by the banking industry lobbyists to restrict third-party providers from offering returns to stablecoin holders, could weaken the US competitiveness in the global financial system and even pose a 'national security trap'. Crypto-friendly lawyer ...
Several crypto industry executives and advocacy groups have warned that amending the stablecoin regulatory framework under the GENIUS Act, as requested by the banking industry lobbyists to restrict third-party providers from offering returns to stablecoin holders, could weaken the US competitiveness in the global financial system and even pose a 'national security trap'.
Crypto-friendly lawyer John Deaton stated that banning stablecoin yield mechanisms could actually drive the market towards interest-bearing digital yuan from China, potentially undermining the dollar's status. The Blockchain Association highlighted that there is currently no evidence to suggest that stablecoin development would disrupt traditional banking systems, and such amendments appear more like competitive blocking tactics by major banks after the bipartisan consensus.
Alexander Grieve, Vice President of Government Affairs at Paradigm, also warned that overturning existing incentive arrangements would waste legislative progress. Meanwhile, Galaxy Digital CEO Mike Novogratz bluntly stated that the US would be making a wrong choice by rolling back related rules due to industry pressure.
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Link: Crypto Industry Executives: Amending GENIUS Act Could Pose 'National Security Trap' [Copy]
