Senators receive over 250,000 letters urging stablecoin yield protections.

crypthub

4 days ago

Stablecoin Law Dispute

Crypto advocates are pushing back against Wall Street banks attempting to alter the GENIUS Act. The act currently limits stablecoin issuer ability to offer direct interest but allows affiliates to do so. Stand With Crypto mobilized over 2.7 million members to contact senators and defend the legislation.

Bankers' Concerns and Lobbying

Banking groups argue that allowing stablecoins to offer interest could negatively impact deposits and money-market funds. They are lobbying Congress to eliminate stablecoin interest payments entirely. This effort aims to protect traditional banking practices and business models.

GENIUS Act and Regulatory Implementation

The GENIUS Act is the first major crypto law passed in the U.S. Federal regulators are beginning to implement the law, however, progress has been slowed. A current government shutdown has temporarily derailed this regulatory process.

Crypto Community Response

Stand With Crypto, initially formed by Coinbase, is actively involved in defending the GENIUS Act. The organization's members sent over 250,000 messages to senators. This demonstrates the crypto community’s commitment to protecting the law’s current structure.