The GENIUS Act was intended to establish guardrails for the use of payment stablecoins, which are digital assets designed to maintain a stable value and function like cash in the digital economy. But as currently implemented, the law contains a serious loophole that threatens the financial well-being of local communities, small businesses, and the community banks we all rely on.

The law rightly prohibits stablecoin issuers from offering interest or yield to people who invest in stablecoins. The goal was to prevent these products from being marketed like investment vehicles, but some crypto platforms are using a workaround. They are partnering with third parties and effectively offering consumers high incentives to hold their money on crypto platforms instead of in traditional banks. This

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