The American Bankers Association (ABA), along with 52 state bankers associations nationwide, has submitted a letter to the US Department of the Treasury, urging an implementation of the GENIUS Act’s prohibition on interest for payment stablecoins.

This letter responds to the Treasury’s advance notice of proposed rulemaking concerning the country’s stablecoin bill and underscores the importance of maintaining the law’s primary objective: to ensure that stablecoins function as payment instruments rather than investment options.

Associations Warn Of Risks To Traditional Banking

The associations articulated that the GENIUS Act’s ban on payment stablecoin issuers offering interest or yield reflects Congress’s intention for these stablecoins to be used primarily for transactions. They e

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