US Banks Warn Stablecoin “Loophole” Could Trigger $6.6 Trillion Deposit Flight

US banking groups are intensifying pressure on lawmakers to amend the recently passed GENIUS Act, warning that its current structure risks destabilizing the financial system by indirectly enabling crypto exchanges to offer yield on stablecoins. It marks a subsequent attack from banking giants against crypto, after reports that they are trying to disrupt Coinbase and Robinhood. Banks Warn Stablecoin Yield Rules Could Spark Trillion-Dollar Deposit Flight The Financial Times reported pushback from the American Bankers Association, the Bank Policy Institute, and the Consumer Bankers Association. Based on the report, these traditional finance (TradFi) players argue that the GENIUS Act, passed in July, contains a “loophole source: https://beincrypto.com/us-banks-push-back-genius-act-stablecoins/