Bankers Urge Congress to Close Stablecoin Yield Loophole in GENIUS Act

Major U.S. banking groups, spearheaded by the Bank Policy Institute (BPI), are urging Congress to close a perceived loophole in the recently enacted GENIUS Act. This loophole, they contend, could allow stablecoin issuers and their affiliates to offer interest or yields on stablecoins, potentially destabilizing the traditional banking system.