GENIUS Act Sparks Clash as Banks Push to Limit Stablecoin Yields
The U.S. Senate’s GENIUS Act has become a battleground over control of digital dollar returns, with stablecoin yields at the center of the debate. These yields have allowed crypto products to compete directly with traditional bank deposits, prompting pushback from the banking sector.
Banks argue that unchecked stablecoin rewards pose risks to consumers and financial stability. Their lobbying efforts focus on restricting yields to transaction-based activities or limiting them to regulated financial institutions. Such measures WOULD curb DeFi platforms' role in driving stablecoin innovation.
The crypto industry warns these restrictions would strip stablecoins of their competitive edge, reducing them to low-utility digital cash rather than transformative financial tools.
